Kioxia CEO Says Memory Prices Are 'High Enough,' Avoids Hikes That Could Dent AI Investment

Kioxia Chief Executive Hiroo Ota said on September 9 that memory chip prices have risen high enough, and he has instructed the business team not to significantly raise prices for data center customers in order to avoid dampening AI industry investment appetite. He noted that even hyperscale data center operators have limited budgets, and continued runaway price increases could eventually hurt AI investment and undermine long-term growth of the memory market.

Kioxia's core products include NAND flash memory and solid-state drives (SSDs). Data shows that Kioxia's average NAND flash price rose 70% in June compared with the previous quarter, following a more than double-digit increase in the prior quarter. Analysts expect the company's operating profit for the fiscal year ending March 2027 to grow more than ninefold. Ota said another 70% quarter-over-quarter price increase is unlikely, but he did not rule out future price hikes, adding that the company's current priority is to keep chip prices at a high level rather than push them higher.

He also said global tech giants still have strong demand for NAND chips, with some suppliers seeking to extend contract terms to 2030, and Kioxia is close to achieving its goal of covering 50% of shipments with long-term agreements.

Addressing speculation that Kioxia and SK Hynix might pursue production cooperation to reduce capital expenditure risks, Ota denied the possibility, citing antitrust hurdles and the difficulty of reconciling Kioxia's existing joint venture relationship with SanDisk. He stressed that the two companies are not currently in talks on joint production.