2022-04-14 | NDAQ:WDC | Press release

Initial production will begin in the fall of the 2022 calendar

Kioxia Corporation and Western Digital Corp. (NASDAQ: WDC) have finalized a formal agreement to jointly invest in the first phase of the Fab7 (Y7) manufacturing plant at the industry-leading Yokkaichi plant in Kioxia, Mie Prefecture, Japan. With the construction of the first phase of Y7 complete, the joint venture investment will enable initial production from the fall of this year. This marks another milestone in the 20-year strategic joint venture partnership between the two companies.

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Fab7 (Y7), Yokkaichi Plant (Photo: Business Wire)

“We are very pleased to further deepen our strategic partnership with Western Digital through this joint investment in Y7, ” said Nobuo Hayasaka, President and CEO of Kioxia. “The rapid digitization of societies underpins the acceleration in the use of memory products. We will continue to leverage our technology partnership and economies of scale to develop and produce advanced semiconductor products and achieve organic business growth.”

“This joint investment in Y7 furthers our productive and positive relationship with Kioxia, underscoring our substantial global share in memory, the continued importance of memory and storage, and our multi-faceted commitment to Japan,” said Dr. Siva. Sivaram, President, Technology and Strategy, Western Digital. “Our strategic partnership with Kioxia has led to the introduction of cutting-edge technology while scaling up manufacturing and R&D capabilities. We look forward to continuing to deliver long-term success together.”

This joint venture investment adds a sixth flash memory manufacturing plant to the Yokkaichi plant, further strengthening its position as the world’s largest flash memory manufacturing site. The first phase of the Y7 facility will produce 3D flash memory comprising 112 and 162 layers and future nodes.

Kioxia and Western Digital will continue to maximize their synergies through the joint development of 3D flash memory and joint investments in line with market trends to strengthen their respective competitiveness and expand their memory leadership.

About Kioxia

Kioxia is a global leader in memory solutions, dedicated to the development, production and sale of flash memory and solid state drives. In April 2017, its predecessor Toshiba Memory was spun off from Toshiba Corporation, the company that invented NAND flash memory in 1987. Kioxia is committed to elevating the world with memory by offering products, services and systems that create a choice for customers and based on memory. value for society. Kioxia’s innovative 3D flash memory technology, BiCS FLASH™, is shaping the future of storage in high-density applications including advanced smartphones, PCs, SSDs, automotive and data centers.

About Western Digital

Western Digital is on a mission to unlock the potential of data by harnessing the ability to use it. With Flash and HDD franchises, backed by advances in memory technologies, we create breakthrough innovations and powerful data storage solutions that empower the world to actualize its aspirations. At the heart of our values, we recognize the urgency of tackling climate change and are committed to achieving ambitious carbon reduction targets endorsed by the Science Based Targets initiative. Learn more about Western Digital and Western Digital®, SanDisk® and WD® brands at www.westerndigital.com.

Forward-looking statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including statements regarding expectations regarding demand trends; market conditions and opportunities; and the company’s future financial and operating performance. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. Important risks and uncertainties include: future responses to and effects of the COVID-19 pandemic; volatility in global economic conditions; the impact of business and market conditions; the impact of competitive products and prices; our development and introduction of products based on new technologies and our expansion into new data storage markets; risks associated with cost reduction initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and our strategic relationships; manufacturing difficulties or delays or other supply chain disruptions; the hiring and retention of key employees; our substantial level of indebtedness and other financial obligations; changes in our relationships with our major customers; disruptions to operations due to cyberattacks or other system security risks; actions of competitors; risks associated with compliance with changing legal and regulatory requirements and the outcome of legal proceedings; and other risks and uncertainties listed in the Company’s filings with the Securities and Exchange Commission (the “SEC”, including the Company’s Form 10-K filed with the SEC on August 27, 2021, on which Your attention is drawn to You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law.

Western Digital, the Western Digital logo, SanDisk and WD are either registered trademarks or trademarks of Western Digital Corporation or its subsidiaries in the United States and/or other countries.

Luisa D. Fuller