Plunges as Kioxia Partnership Advances NAND Output

TLDR

• Sandisk stock drops 14.13% despite new NAND production milestone.

• Kioxia and Sandisk begin 10th-generation 3D Flash output in Japan.

• K2 facility expands advanced NAND capacity for AI and storage demand.

• Joint venture extension gives both firms a longer NAND growth runway.

• Sandisk rebounds after hours, but session pressure remains heavy.

Sandisk Corporation (SNDK) dropped 14.13% to close at 1,745.00, despite progress in its long-running Kioxia NAND partnership. The stock rebounded slightly after hours to 1,762.07, up 0.98%. However, the session showed sharp pressure as production news failed to support sentiment.

Sandisk Corporation, SNDK

Sandisk and Kioxia Start 10th-Generation 3D Flash Production

Kioxia Corporation and Sandisk started production of 10th-generation 3D Flash memory at Fab2 in Japan. The facility sits at the Kitakami Plant in Iwate Prefecture. The production milestone expands output for advanced NAND products used in data-heavy applications.

The companies opened the K2 facility in September 2025, and it already produced eighth-generation 3D flash products. Now, the partners plan to scale the site with 10th-generation technology. This step supports their goal of long-term bit growth.

Both product generations use CBA technology, which bonds CMOS directly to the memory array. The design supports higher capacity, better performance and lower power use. As a result, the technology targets rising demand from AI and storage markets.

K2 Fab Adds Capacity and Efficiency

The Fab2 facility includes an earthquake-absorbing structure, which supports manufacturing stability in Japan. It also uses energy-saving production equipment across key manufacturing processes. Therefore, the site fits the partners’ focus on efficient chip production.

Kioxia and Sandisk also use artificial intelligence inside the facility to improve production efficiency. The plant design creates more clean-room space for manufacturing equipment. That approach helps the companies expand output without wasting available factory space.

The companies recently extended their joint venture framework through December 2034. The agreement strengthens a partnership that has supported NAND development for more than 25 years. It also gives both companies a longer runway for capital investment.

NAND Expansion Moves Ahead Despite Sandisk Stock Drop

Sandisk and Kioxia have built their NAND partnership through joint development and shared manufacturing investment. The alliance remains central to their ability to produce advanced flash memory at scale. It also supports supply stability for customers across several technology markets.

The latest production start comes as AI systems increase demand for high-performance storage. Flash memory helps support faster data access, larger storage capacity, and lower power requirements. Advanced NAND remains important for cloud, device, and enterprise workloads.

Still, Sandisk stock moved sharply lower during the session. The decline showed that the production milestone did not offset broader selling pressure. Even so, the K2 expansion gives Sandisk and Kioxia a stronger manufacturing base for future NAND output.