During its fiscal 2027 second-quarter earnings call, Kioxia revealed that its chip capacity allocation for 2027 is essentially sold out—all available capacity has been locked in amid extremely strong market demand. This marks the first time in Kioxia's history that the company has secured a full year's capacity allocation a year in advance. More than 50% of its 2028 capacity has already received firm purchase commitments from customers, and the company has begun business negotiations for 2029 through 2030. Faced with this supply-demand imbalance, Kioxia has decided to go all out to expand capacity. As of the end of September, the company held cash reserves of 1.3973 trillion yen; aside from setting aside a reasonable emergency reserve, the remaining funds will in principle be directed toward expansion investments, covering capital expenditure, R&D, human capital, and strategic mergers and acquisitions. Kioxia previously disclosed that its average annual investment for fiscal 2026 through 2028 would be approximately 470 billion yen, with cumulative capital expenditure of about 1.4 trillion yen over the three-year period. Because capacity expansion brooks no delay, the company has moved part of the capital expenditure originally scheduled for fiscal 2027 forward to fiscal 2026, with investment in fiscal 2026 expected to reach nearly 600 billion yen; it has no plans for now to significantly adjust its three-year overall capital expenditure plan. Among these projects, the company plans to build a new No. 3 manufacturing building at its Kitakami plant in Kitakami, Iwate Prefecture, Japan, which is expected to be completed and put into production within fiscal 2029.