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Kioxia achieved record profits in FY2026, boosting its market cap to Japan's 4th largest, but now faces a factory shutdown risk due to Middle East instability disrupting raw material supplies.

Kioxia's Record Profits and Market Optimism

Kioxia Holdings reported record-high profits for the fiscal year ending March 2026. From January to March 2026, sales increased by 188.9% year-over-year to 1 trillion 29 billion yen, with operating profit surging 15.9 times and net profit 30.8 times. This led to its stock price reaching an all-time high, with market capitalization temporarily exceeding 8 trillion yen, ranking 4th among Japanese companies. Media outlets celebrated this as a symbol of the revival of Japan's memory industry.

Middle East Tensions Threaten Supply Chain

However, despite the celebratory mood, concerns are rising over the severe threat posed to Kioxia by the rapidly deteriorating situation in the Middle East. There is an imminent risk of supply disruptions for crucial materials such as helium (He), essential for dry etching equipment; naphtha-derived critical components, vital for the continuous operation of all manufacturing equipment; and photoresists. Such interruptions in raw material supply could lead to the shutdown of Kioxia's factories, underscoring the urgent need for robust crisis preparedness from the management.

*Source: JBpress (2026-05-22)*

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