Kioxia Corporation (TOKYO: 285A) and Sandisk Corporation (NASDAQ: SNDK) announced an extension of their joint venture agreements at Kioxia's Yokkaichi Plant through December 31, 2034. The agreement was previously set to expire on December 31, 2029.

As part of the renewed agreement, Sandisk will pay Kioxia $1.165 billion for manufacturing services and continued supply availability. The payments will be made in installments from 2026 to 2029.

The joint venture agreement for Kioxia's Kitakami Plant has been aligned with the Yokkaichi agreement through the same December 31, 2034 date. The companies stated the extension allows them to continue production of 3D flash memory using what they describe as AI-enabled smart manufacturing and economies of scale.

"We are delighted to deepen our strategic partnership with Sandisk," said Nobuo Hayasaka, President and CEO of Kioxia. "We view this agreement not only recognizes the value of Kioxia's manufacturing operation, but also strengthens its profitability by leveraging economies of scale."

David Goeckeler, Chairman and CEO of Sandisk Corporation, said the joint venture "continues to be a thriving collaboration across NAND R&D and manufacturing that has consistently delivered the highest performing, lowest cost NAND technology to both companies."

The partnership between the companies spans more than 25 years. According to the announcement, the companies plan to continue co-development of 3D flash memory and joint investments aligned with market trends.