Kioxia Holdings, a prominent Japanese memory chip manufacturer, recently announced that the demand for NAND memory chips is projected to experience an annual growth rate of around 20% due to the ongoing expansion of AI data centers. Company executives revealed that they are revising their investment decisions on a monthly basis to align the capacity of new factories with market demand. Kioxia's NAND flash memory products have found widespread application in smartphones, laptops, and high-speed storage modules for data centers. Presently, the robust demand is predominantly driven by hyperscale AI chip consumers, with certain clients intending to upgrade outdated servers while encountering a scarcity of hard drive supplies. The second production facility of Kioxia's flash memory plant in Kitakami, Iwate Prefecture, Japan, has officially begun operations, with the intention of delivering state-of-the-art memory chips in the first half of the upcoming year. The company is stepping up investments in its primary chip factories located in Kitakami and Yokkaichi, Mie Prefecture, with the ambition to double memory production over the five-year span starting from fiscal year 2024, thereby aiming to close the gap with industry leaders Samsung and SK Hynix. Previously, the NAND market, which had been weighed down by sluggish demand for smartphones and PCs, coupled with an overabundance of inventory, is now displaying signs of a rebound. According to forecasts from research firms, NAND flash memory prices are anticipated to increase by 5% to 10% in the fourth quarter of 2025 compared to the preceding quarter.