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Exercising Caution on Capital Expenditures: Kioxia’s Market Capitalization Exceeds 50 Trillion Yen, but FY Investment Plan Is Down 10% From the 2023 Peak
Svmuu News: AI investor Lupang posted on X that while Kioxia’s market capitalization recently surpassed 50 trillion yen, the company remains cautious about its future capital expenditures compared to the past. Kioxia plans to invest an average of 470 billion yen annually from fiscal years 2026 to 2028, a 66% increase from 2025, but about 10% lower than the all-time high of 510.4 billion yen recorded in fiscal year 2023. In 2022, Kioxia invested 1 trillion yen in its Yokkaichi plant, but subsequently posted losses for five consecutive quarters due to declining demand; the company is currently focusing its cash flow management on its Beishang plant. The NAND market is currently in an upswing cycle, with contract prices in the second quarter of 2026 rising 70% to 75% quarter-over-quarter, and supply shortages intensifying. Kioxia plans to shift 50% of its total shipments to long-term supply agreements by 2028 to secure a stable revenue base. With Kioxia restricting market supply, Samsung Electronics and SK hynix may gain related opportunities, and South Korean companies specializing in NAND process materials, components, and equipment may also benefit. The consortium to which SK hynix belongs still holds an 18% stake in Kioxia; as Kioxia’s enterprise value rises, the scale of SK hynix’s potential investment gains may expand.
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