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Japan’s Kioxia sees AI driving strong memory growth for years
Kioxia projects a 20% annual growth in NAND storage demand, driven by AI data centers boosting memory needs. The Tokyo-based company plans monthly investments to ensure its new plant meets this demand, especially from hyperscalers and customers needing server replacements.
Key points
- Kioxia anticipates a 20% yearly growth in NAND storage demand due to AI's rise.
- Executive VP Tomoharu Watanabe stated that the company is making monthly investments in a new plant.
- Strong demand is particularly from hyperscalers for generative AI applications.
- There is a significant need for replacing data center servers installed five to six years ago.
- Certain customers are also facing shortages of hard drives.
Why it matters
- The increasing importance of AI in driving demand for memory technology aligns with the 2025 IT trend of AI-driven infrastructure.
- This surge in memory requirements reflects historical shifts in technology adoption cycles, similar to past surges during mobile and cloud computing booms.
- Investment in memory technology suggests an underlying trend toward greater data center efficiency and scalability as AI and big data continue to grow.
Kioxia's strategic focus on boosting NAND production readiness highlights the critical role of memory technology in supporting the ongoing AI-driven evolution of data centers, reinforcing the strong growth trajectory in the tech industry.