Kioxia makes its debut on the Tokyo Stock Exchange Prime Market on December 18. (EPA=Yonhap)
SEOUL, Dec. 18 (Korea Bizwire) – Kioxia Holdings, Japan’s leading NAND flash memory producer and formerly Toshiba Memory, made its debut on the Tokyo Stock Exchange Prime Market on December 18, drawing attention from the global semiconductor industry.
The IPO raises questions about shifts in the NAND market, currently dominated by Samsung Electronics and SK Hynix, and the potential resurgence of Japan’s semiconductor sector.
Despite a prolonged semiconductor downturn caused by the global economic slowdown, Kioxia is optimistic about growing NAND demand for AI applications.
The company plans to invest proceeds from its IPO into advanced memory production facilities, focusing on AI server-targeted NAND, such as enterprise solid-state drives (eSSDs).
Kioxia’s entry into the AI-focused NAND market could intensify competition. In Q3 2024, Kioxia held a 15.1% market share, ranking third behind Samsung (35.2%) and SK Hynix, including Solidigm (20.6%).
While Kioxia’s market share trails its rivals, analysts suggest its technological gap with SK Hynix may limit immediate shifts in the competitive landscape.
Kioxia’s market capitalization reached ¥836 billion (approximately KRW 8.1 trillion) at the close of its first trading day, far below Samsung’s KRW 327.7 trillion and SK Hynix’s KRW 133.5 trillion.
Kioxia’s entry into the AI-focused NAND market could intensify competition. (Image courtesy of Kioxia webpage)
Industry experts believe Kioxia’s IPO strengthens its financial footing but doubt it will quickly challenge the dominance of Samsung or SK Hynix in NAND memory.
The IPO, however, carries broader implications for Japan’s semiconductor revival. Once a global leader in the 1980s, Japan’s semiconductor industry declined as South Korea and Taiwan gained prominence.
Backed by government support, Japan is now pushing for a comeback, viewing semiconductors as a cornerstone of economic security.
Key initiatives include the 2022 establishment of Rapidus, a semiconductor company funded by eight Japanese corporations with plans to develop 2nm chip processes by 2027.
Kioxia is also a Rapidus investor, reflecting its alignment with national efforts to rebuild Japan’s semiconductor ecosystem.
“Kioxia’s IPO mitigates the risk of losing a major player in Japan’s semiconductor industry,” said Kim Yang-paeng, a senior researcher at the Korea Institute for Industrial Economics and Trade.“While the listing itself may not result in immediate capacity or revenue growth, it marks a step toward stabilizing and revitalizing the sector.”
Japan’s renewed focus on semiconductors, coupled with Kioxia’s strategic investments, could signal a turning point for the industry as it strives to regain its global footing.
Note to editor: The KRW-to-YEN exchange rate referenced in the article is based on the rate applicable on the date of publication.
Ashley Song (ashley@koreabizwire.com)
