Shares of SanDisk fell nearly 2% during the trading session on Thursday, August 27 even as the chipmaker along with Kioxia Holdings plans to invest more than ¥5 trillion ($31.4 billion) to boost production capacity in Japan.
SanDisk shares declined as much as 1.87% to $1,471.38 apiece during the session.
The investments are aimed at supporting infrastructure expansion at the Yokkaichi and Kitakami plants, along with related technology and facilities.Through the latest investment, both Kioxia and Sandisk aim to drive meaningful, multi-year bit growth and ensure stable supply to address the strong demand for flash memory technology, the companies said in statement on Thursday, August 27.
“This joint investment further strengthens our longstanding partnership with Sandisk and underscores Kioxia's strong commitment to contributing to the advancement of an AI-driven society,” said Hiroo Ota, President and CEO of Kioxia.
“Kioxia will continue to meet growing demand for high-capacity, high-performance, and power-efficient flash memory, which is essential to the growth of an AI-driven society. We sincerely appreciate the support of the Japanese government to date and recognize the importance of its continued strategic support in maintaining further strengthening our global competitiveness," Ota added.
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