On August 27, Kioxia Corporation announced plans to construct a new manufacturing facility at its production site in Iwate Prefecture, located in northern Japan. This move is designed to expand production capacity and meet the soaring demand for storage devices within the artificial intelligence (AI) sector, with an estimated investment surpassing 1 trillion yen (approximately US$6.27 billion). According to reports, the new plant, which will be the third facility at the site, will focus on producing the latest high-density 3D flash memory chips. These chips are crucial for handling the immense data workflows generated by AI services. Last month, Kioxia commenced shipping its tenth-generation BiCS stacked NAND flash memory chips. Japan continues to offer financial backing to companies like TSMC, Sony Group, and Micron Technology. In a similar vein, Kioxia and SanDisk are also preparing to apply for subsidies from the Japanese government. A source with knowledge of the situation disclosed that Kioxia is set to unveil its expansion plans on Thursday evening.