Sandisk Corporation (NASDAQ: SNDK) tumbled Thursday, on word of its alliance with Kioxia Holdings Corporation and today announced anticipated significant investments in Japan, totaling over $31 billion (approximately five trillion yen) contingent upon government support. The investments through 2032 will continue to strengthen the Kioxia and Sandisk partnership, one of the most successful joint ventures across any industry.
The partnership has helped drive decades of NAND flash memory innovation and invested over $50 billion (approximately nine trillion yen) in Japan over the past 25 years. Kioxia and Sandisk will continue to deliver leading technology to support the growing demands of an AI and a data-driven world.
“Aligned with market trends,” according to this morning’s news release, “these investments will support the ongoing buildout of infrastructure at the Yokkaichi Plant and the Kitakami Plant, along with related infrastructure, technology.
“Kioxia and Sandisk each has committed to drive meaningful, multi-year bit growth and ensuring stable supply to address the strong demand for their innovative flash memory technology. In line with these commitments, the announced investments are intended to fuel the joint venture’s long-term success and ability to deliver leading-edge flash memory innovations at scale and with stability.”
SNDK shares sank $27.99, or 1.9%, to $1,471.38.
