Chipmaker begins shipping samples of new 3D flash memory for AI data centers

A Tokyo-based chipmaker has started shipping samples of its next-generation flash memory chips to artificial-intelligence data center operators. The 332-layer 10th-generation chips store 59% more data than the company's previous flagship 8th-generation chips, the company said Friday.

Production will occur at the second manufacturing facility at its Kitakami plant in Iwate Prefecture, which began operating in September last year.

Market position and competition The company trails South Korean firms in the NAND flash memory market for data centers. Samsung Electronics held 40% and SK Hynix held 30% of that market last year, while the company held 10%, according to an Omdia analyst.

The analyst said the new chips offer superior data processing speed, which is most important for U.S. hyperscalers, and called the 10th-generation chips a big advance that makes them competitive.

Share performance and outlook The company's shares reversed double-digit percentage losses to rise 8.9% Friday morning in Tokyo. The flash memory market is expected to expand further with the rise of AI agents and the use of AI to operate robots and other machines, the company's chief executive said at a media event.

The new product, which will be used in solid-state drives, is key for the company's effort to capitalize on demand for AI data center storage and reduce reliance on products for smartphone manufacturers.