Kioxia CEO Hiroo Ota Halts NAND Price Increases

Ender Öztürk

September 9, 2026

In a significant shift for the semiconductor industry, Kioxia CEO Hiroo Ota announced that the company will halt further price increases for its NAND flash memory products. This decision, disclosed shortly after his appointment in April, aims to mitigate the intense market pressure that has persisted throughout the year. Following a period where quarterly NAND prices surged by 70 percent, this move provides much-needed relief to major technology partners, most notably Apple, which accounts for approximately 20 percent of Kioxia’s total revenue. By freezing prices, Kioxia intends to stabilize the volatile supply chain and support the financial sustainability of its key data center and consumer electronics clients.

Market Stability Is Being Prioritized Over Aggressive Growth

Hiroo Ota emphasized that even the largest hyperscale data centers operate under strict budgetary constraints. He warned that continued aggressive pricing could ultimately harm the entire ecosystem. Although Kioxia pursued a strategy of rapid price escalation during the second quarter of the year, the executive leadership has determined that such an approach is no longer sustainable for long-term market health. This policy shift is expected to alleviate some of the financial strain experienced by global technology giants that have struggled with rising component costs throughout the fiscal year.

Apple Is Seeking Strategic Solutions for Memory Costs

Apple has previously highlighted the impact of rising memory costs on its profit margins in recent financial reports. The tech giant has maintained a cautious outlook regarding supply chain expenditures, reflecting the pressure caused by the recent “chipflation” trend. While Kioxia’s new stance provides a temporary buffer, Apple continues to explore diversification strategies to ensure long-term stability. Reports suggest the company is in discussions with alternative suppliers, such as the Chinese manufacturer CXMT, to reduce its reliance on any single source. These strategic maneuvers are designed to strengthen Apple’s bargaining power against future price volatility within the semiconductor market.

Industry Dynamics Are Being Reshaped by Price Controls

The recent volatility in the memory sector forced manufacturers into a difficult position between protecting profit margins and maintaining customer relationships. By choosing to freeze prices, Kioxia is effectively attempting to bridge the gap between supplier requirements and consumer budget limitations. Industry experts suggest that this price stabilization could have a secondary effect on the broader market, potentially helping to balance the cost pressures that have been passed down to consumers in the form of higher smartphone and computer prices. While the industry remains competitive, this development marks a transition toward more predictable supply chain management.

Do you believe Kioxia’s decision to freeze prices will successfully curb the rising costs of consumer electronics, or are we likely to see further volatility in the memory chip market? Share your thoughts and predictions in the comments section below.