Japan based computer memory manufacturer Kioxia Holdings Corp has entered into a partnership with Western Digital Corp. (WDC) to jointly build a new flash memory fabrication plant in its plant in northern Japan.
This development was revealed by an insider source involved in the matter who disclosed that the project will require an investment of 1 trillion yen ($8.3 billion). Western Digital is a United States based computer hard disk drive manufacturer and data storage company.
According to Kioxia Holdings, construction of the new plant at its Kitakami facility is slated to begin in April 2022 and is expected to be completed in 2023. The company also said the new facility will be earthquake-resistant.
Currently the two companies are already jointly producing flash memory chips in Japan. The source further revealed that two partners are planning to discuss the venture details including an investment ratio.
Kioxia is also contemplating a possible initial public offering (IPO) after Toshiba which owns a significant stake of 40.6% in Kioxia asked the company to have an IPO as soon as possible.