Sandisk shares fall 14.13% as Kioxia partnership starts 10th-generation 3D Flash production at K2

The companies began manufacturing their latest NAND technology at Fab2 in Japan’s Kitakami Plant, expanding capacity for AI-related storage demand while their joint venture now runs through December 2034.

Summary

Sandisk Corporation shares fell 14.13% to 1,745.00 on July 3 even as the company and Kioxia began manufacturing 10th-generation 3D Flash memory at the Fab2 site within the Kitakami Plant complex in Iwate Prefecture, Japan. After-hours trading showed a modest 0.98% recovery to 1,762.07. The launch marks an expansion of advanced NAND production at the K2 manufacturing complex, which began operations in September 2025 with eighth-generation 3D flash memory and is now adding the partners’ newer technology. Both generations use CBA architecture, which directly bonds CMOS logic and memory arrays to improve storage density, speed and power efficiency for data-intensive applications including artificial intelligence. The facility also includes seismic isolation, energy-efficient production systems, AI-driven workflow optimization and clean-room capacity designed to support higher output. Kioxia and Sandisk recently extended their joint venture through December 2034, reinforcing a manufacturing alliance focused on long-term NAND development and supply.

Terms & Concepts
  • 3D Flash memory: A type of NAND storage that stacks memory cells vertically to increase capacity and efficiency.
  • NAND: A widely used form of non-volatile flash memory found in storage products such as data center and consumer devices.
  • CBA architecture: A chip design approach that directly bonds CMOS logic with memory arrays to improve density, speed and power use.