SUPPLY CHAIN FLASH Aug 31, 2026
Blocks & Files reports (Aug 28) that the Kioxia/Sandisk joint venture will spend more than $31 billion (¥5 trillion) over six years expanding NAND wafer production in Japan — at Yokkaichi (six fabs, Fab 2–7) and Kitakami (Fab 1–2) — with roughly a third of the investment expected to come from Japanese government subsidies. Kioxia CEO Hiroo Ota and Sandisk CEO David Goeckeler met Japan's PM Sanae Takaichi, who welcomed the plan without committing specific funding. The output split stays about 60/40 Kioxia/Sandisk.
The admin lesson: NAND fabs take years to build and qualify, so this is a 2029+ supply story, not a 2027 price fix. Flash prices are being set by AI-driven demand today, and the memory-crunch dynamics from this summer (DRAM/NAND capex squeeze, five-year Micron lock-ins) are expected to keep SSD pricing elevated through next year's refresh cycle. Practical moves: quote AFF/node refreshes at current pricing and get quotes in writing with validity windows; keep HDD/object tiers (FAS hybrid, StorageGRID) in the architecture so cold data isn't paying flash prices; and when a vendor quotes a flash array, re-check raw-vs-usable math — in a tight market the fine print matters more, not less.