Flash memory maker Kioxia (TYO:285A) outlined its medium to long-term growth strategy on Thursday, focusing on expanding the role of SSDs in AI infrastructure and boosting profitability through product innovation and disciplined investment.

The company expects nearly half of NAND demand to be AI-related by 2029, driven by growth in inference systems and AI-capable smartphones and PCs.

To address this demand, Kioxia is developing high-performance, large capacity SSDs, including the CM9 and LC9 series built on its eighth-generation BiCS FLASH.

Production of the eighth-generation BiCS FLASH is ramping up, while development of the ninth and tenth generations is underway. Kioxia also plans to sample a super-high IOPS SSD, delivering over 10 million IOPS, in 2026.

The company aims to keep capital expenditures below 20% of revenue and maintain research and design spending at 8% to 9%. It targets an average operating margin in the mid-20% range and a long-term shift to a net cash position.