Core Viewpoint - Kioxia Corporation and Sandisk Corporation have extended their joint venture agreements for an additional five years, now running through December 31, 2034, highlighting a long-standing partnership in the flash memory industry [1][2]. Group 1: Joint Venture Extension - The extension of the joint venture agreements at Kioxia's Yokkaichi Plant emphasizes the collaboration between Kioxia and Sandisk, focusing on AI-enabled smart manufacturing and economies of scale for advanced 3D flash memory production [2]. - The joint venture agreement for Kioxia's Kitakami Plant is also aligned with the Yokkaichi agreement, extending through December 31, 2034 [2]. Group 2: Financial Aspects - Sandisk will pay Kioxia USD 1.165 billion for manufacturing services and continued supply availability, with payments scheduled in installments from 2026 to 2029 [3]. Group 3: Strategic Importance - The partnership is viewed as a strategic move to enhance Kioxia's profitability by leveraging economies of scale at the largest flash memory manufacturing facilities [4]. - The collaboration has consistently delivered high-performing, low-cost NAND technology, contributing to the expected growth of the NAND market, projected to reach USD 150 billion by 2026 [5]. Group 4: Commitment to Innovation - Kioxia and Sandisk are committed to maximizing synergies through co-development of 3D flash memory and joint investments, aiming to strengthen their competitive positions in the global memory industry [5].

Group 1 - Sandisk Corp. experienced a decline of 5.64% on Monday, ending at $121.17, as investors took profits after a three-day winning streak [1] - The company is set to announce its first quarter earnings for fiscal year 2026 on November 6, with revenue expectations between $2.10 billion and $2.20 billion, and diluted earnings per share projected at $0.70 to $0.90 [2] - Sandisk, in collaboration with Kioxia Corp., has commenced operations at its Fab2 production facility in Iwate Prefecture, Japan, which will produce advanced 3D flash memory [3][4] Group 2 - The Fab2 facility is designed to manufacture eighth-generation, 218-layer 3D flash memory using innovative CBA technology, aimed at meeting the increasing storage demands driven by the artificial intelligence sector [4] - Production at the Fab2 facility will gradually increase, with significant output anticipated in the first half of 2026 [5]

Group 1 - Sandisk's stock has increased nearly 28% week to date, driven by positive production news and favorable sentiment in the chip manufacturing sector [1] - Sandisk and Kioxia have launched operations at a new semiconductor fabrication plant, Fab2, located in Japan [2] - The new facility will produce advanced 3D flash memory to meet the growing demand for flash memory in AI applications [3][4] Group 2 - Sandisk is positioned as a strong investment opportunity in the flash memory segment, particularly as a "pick-and-shovel" play in the AI space [5] - The company is increasing its manufacturing capabilities with the new facility in Japan [6]