Kioxia: 2026 NAND Flash Production 'Sold Out' Amid AI Demand

Japan - Ekhbary News Agency

Memory manufacturer Kioxia has announced that its entire NAND flash production capacity for 2026 has been fully booked, underscoring the intense demand currently shaping the semiconductor market. This disclosure highlights a persistent supply shortage, largely fueled by the burgeoning artificial intelligence sector.

Supply Constraints and Price Hikes

Shunsuke Nakato, Managing Director of Kioxia's Memory Business Unit, stated in an interview with Korean outlet Digital Daily that the insatiable appetite of the AI industry for memory components has created a challenging supply-demand imbalance. He noted that widespread investment in AI, driven by a fear of falling behind, is likely to prolong this situation through at least 2027.

Despite the tight supply, Kioxia is reportedly maintaining a "gentleman's agreement" with its clients, prioritizing existing contracts over a first-come, first-served or highest-bidder model. However, Nakato acknowledged that even long-term Kioxia customers are facing significant price increases, potentially as high as 30% year-on-year.

Technological Outlook and Production Capacity

In a separate discussion point, Nakato expressed skepticism regarding QLC (Quad-Level Cell) NAND flash technology, citing concerns about its lifespan and performance. He argued that eighth-generation NAND flash offers superior structural advantages and would remain the preferred choice.

Looking ahead, Kioxia plans to mitigate the impact of the supply crunch by introducing a range of new products throughout 2026. The company is also focused on enhancing operational efficiency at its Yokkaichi and Kitakami factories, which are already among the world's largest flash memory production facilities. A second chip fab at the Kitakami site is slated to begin full-scale production later this year, which could help alleviate supply issues in the longer term, although significant short-term improvements are not anticipated.

The situation reflects a broader trend in the global semiconductor industry, where substantial investments are being made to ramp up production capacity in response to escalating demand from advanced computing and AI applications. Ekhbary Portal