Kioxia Corporation, a subsidiary of Kioxia Holdings Corporation (TOKYO: 285A), and Sandisk Corporation (NASDAQ: SNDK) today announced the extension of their joint venture agreements at Kioxia’s Yokkaichi Plant for an additional five years. Originally set to expire on December 31, 2029, the agreement will now run through December 31, 2034, marking another significant milestone in the companies’ remarkable partnership spanning more than 25 years.

This extension underscores the deep collaboration between Kioxia and Sandisk, as they continue to leverage AI-enabled smart manufacturing and economies of scale to ensure stable production of advanced 3D flash memory. Their advanced 3D memory products are critical for addressing the growing demand driven by generative AI applications. Furthermore, the joint venture agreement for Kioxia’s Kitakami Plant is aligned with the Yokkaichi agreement through December 31, 2034.

As part of this renewed agreement, Sandisk will pay Kioxia USD 1.165 billion for manufacturing services and continued availability of supply. These cash payments will be made in installments over the years 2026 to 2029

“We are delighted to deepen our strategic partnership with Sandisk. We view this agreement not only recognizes the value of Kioxia’s manufacturing operation, but also strengthens its profitability by leveraging economies of scale at the world’s largest flash memory manufacturing facilities. By continuing to collaborate with Sandisk, we remain committed to delivering high quality flash memory products that drive the transformation of a digital society powered by AI,” said Nobuo Hayasaka, President and CEO of Kioxia.

“The Kioxia-Sandisk JV continues to be a thriving collaboration across NAND R&D and manufacturing that has consistently delivered the highest performing, lowest cost NAND technology to both companies,” said David Goeckeler, Chairman and CEO of Sandisk Corporation. “Started over 25 years ago when the NAND industry was nascent, it has now scaled to deliver hundreds of exabytes, and growing, to what is expected to be a $150B market in 2026. This next chapter of the partnership recognizes the scale of the operation and benefit each company receives from our continued collaboration. We look forward to our continued partnership into the next decade.”

Kioxia and Sandisk remain committed to maximizing synergies through the continued co-development of 3D flash memory and joint investments aligned with market trends. Together, they aim to bolster their competitive positions and reinforce their leadership in the global memory industry.