Kioxia: Fiscal 3Q23 Financial Results

Revenue of Kioxia Holdings Corporation of 3Q23 financial results ended December 31, 2023 increased 9% Y/Y to ¥262.0 billion as ASPs continued to rise due to a further improvement in the supply demand balance and a weaker yen.

Recent Sales Trends

ASPs on a US$ basis rose by high-single-digit-percentage in this quarter.

New products and technology

• Introduced industry first UFS ver. 4.0 embedded flash memory devices for automotive applications
• Released 2TB microSDXC memory card

Japanese government subsidy for Yokkaichi and Kitakami Plants
Kioxia group and its joint ventures with Western Digital Corporation have been approved to receive an up to 150 billion yen subsidy from the Japanese government for the Yokkaichi and Kitakami Plants.

Industry/market trends and outlook

• The supply-demand balance continues to improve and selling prices have started to rise, due to the improvement in customer inventories and flash memory manufacturers controlling production in line with demand.
• Demand for PCs and smartphones is expected to recover further driven by the normalization of customer inventories, the memory content growth in PCs and smartphones, and replacement demand following software updates.
• Demand for data center and enterprise SSDs is expected to recover in the 2CH24 and beyond, as there are signs of normalizing inventory at customers and recovering corporate IT spending.
• With the emergence of Al-enabled PCs and smartphones, industry experts remain confident in the growth potential of the flash memory market and the underlying demand drivers in the longer term horizon.
• Kioxia will continue managing production and operating expenses in line with market conditions, while reducing manufacturing costs and accelerating development of key products to ensure profitability regardless of market conditions.