kioxia: Chipmaker Kioxia returns to quarterly profit on smartphone memory chip demand – Latest News


Japan’s Kioxia Holdings Corp , one of the world’s top producers of NAND flash memory chips, swung back to an operating profit in the second quarter due to solid demand for new smartphones.

The unlisted company, which was spun off by Toshiba Corp , reported an operating profit of 19.8 billion yen ($188 million) for the July-September quarter.

That compared with a loss of 65.8 billion yen in the same period a year earlier, when the company was hit by a downturn in the chip market and a temporary plant suspension due to a power outage.

The company projected a short-term oversupply in the market, and said overall shipments were being “impacted primarily by recent U.S. trade restrictions.”

Kioxia has shelved plans for what would have been Japan’s largest initial public offering (IPO) this year, as U.S.-China tensions cloud the global chip market.

But it is still going ahead with plans to expand capacity, investing more than $9 billion in a new production line in central Japan to meet growing demand for data storage in the long run.





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