Kioxia and Western Digital’s Joint Venture Secures Substantial Government Subsidy of 150 Billion Yen

Kioxia and Western Digital receive substantial government subsidy to support semiconductor production and contribute to the growth of the industry and local economies.

The joint venture manufacturing facilities will receive a substantial subsidy of up to 150 billion yen, highlighting the Japanese government's commitment to fostering semiconductor production.
The subsidy falls under a designated government program aimed at encouraging corporate investment in state-of-the-art semiconductor production facilities and ensuring stable semiconductor production within Japan.
The partnership between Kioxia and Western Digital is one of the longest and most successful in the semiconductor industry, with a track record of developing products and contributing to the growth of semiconductor-related industries.

In a move that highlights the Japanese government’s commitment to fostering semiconductor production, Kioxia Corporation and Western Digital Corporation have announced that their joint venture manufacturing facilities in Yokkaichi and Kitakami will receive a substantial subsidy of up to 150 billion yen. This funding will support the production of the companies’ latest generation of 3D flash memory, which utilizes an innovative wafer bonding technology, as well as future advanced nodes.

This is not the first time that Kioxia and Western Digital have received such support from the Japanese government. In 2022, the joint venture manufacturing facility in Yokkaichi was granted a subsidy of up to 92.9 billion yen. The current subsidy falls under a designated government program aimed at encouraging corporate investment in state-of-the-art semiconductor production facilities and ensuring stable semiconductor production within Japan.

With a partnership spanning over two decades, Kioxia and Western Digital are well-positioned to further enhance their development and production capabilities at the Yokkaichi and Kitakami plants. The companies also aim to contribute to the growth of semiconductor-related industries and nurture talent in the field.

Nobuo Hayasaka, President and CEO of Kioxia, expressed gratitude for the government’s support and emphasized the importance of flash memory in driving the ongoing digital transformation of society. He stated, “With this subsidy, we will continue to contribute to the advancement of the semiconductor industry and the development of local and domestic economies.”

David Goeckeler, CEO of Western Digital, echoed these sentiments, thanking the Japanese government for their ongoing commitment to the joint venture’s flash memory manufacturing facilities. He acknowledged the pivotal role that advanced memory and data storage technologies play in addressing the diverse and growing range of data-driven applications.

The partnership between Kioxia and Western Digital is not only one of the longest but also one of the most successful in the semiconductor industry. Together, they have developed products, including the category-defining 3D flash memory. This latest subsidy further solidifies their position as leaders in the field and underscores their dedication to innovation and technological advancement.

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Background Information

About Western Digital:

Western Digital, established in 1970, is a important data storage solutions provider known for its wide range of hard drives and solid-state drives. Catering to various applications, from personal computers to enterprise storage systems, Western Digital emphasizes data management and security. With a reputation for reliability and innovative solutions, the company has been pivotal in shaping the storage industry. Their products are trusted by individuals, businesses, and data centers worldwide