Tokyo – Kioxia, the Japanese memory‑chip manufacturer that has surged more than 450% this year on the Nikkei 225, is preparing to list American Depositary Shares (ADS) in the United States. The move, announced by the company in May, is intended to broaden its investor base and address liquidity concerns that have limited large‑scale U.S. investment.
Voya’s AI‑focused fund sees opportunity
Sebastian Thomas, portfolio manager for Voya Investments’ Global Artificial Intelligence fund, told Reuters that a U.S. listing could change the liquidity calculus for Kioxia, much as it did for South Korea’s SK Hynix after its Nasdaq debut in July. “There are a lot of interesting companies in Japan, particularly that are part of the supply chain,” Thomas said. “It’s an issue of finding ones that have sufficient liquidity where we can invest.”
The Voya fund, which is affiliated with Sumitomo Mitsui DS Asset Management, has delivered roughly 600% cumulative returns over its ten‑year history on a pre‑tax, distribution‑reinvested basis. While Kioxia is not currently held by the fund, Voya does own positions in other memory makers such as SK Hynix and Micron Technology, and Thomas noted that U.S. listings make those investments more straightforward.
Why a U.S. listing matters
Listing ADS on a major U.S. exchange would give Kioxia access to a deeper pool of capital and potentially lower the cost of raising funds for research and development. For American investors, the ADS structure simplifies ownership, avoiding the need to trade through foreign exchanges or navigate complex custodial arrangements.
Liquidity is a key metric for institutional investors, especially those managing large AI‑focused portfolios. A more liquid market for Kioxia shares could attract additional foreign capital, supporting the company’s expansion in AI‑driven semiconductor technologies.
Broader AI investment landscape
Voya’s AI fund is heavily weighted toward chipmaker Nvidia, but it also seeks exposure to companies that stand to benefit from AI adoption, including drugmaker Eli Lilly and other application‑layer firms. The fund’s strategy reflects a belief that AI infrastructure will be a long‑term growth engine, and memory technology is a critical component of that infrastructure.
By adding Kioxia to the U.S. market, investors would gain a direct line to a company that supplies high‑performance memory for data centers, autonomous vehicles, and other AI‑intensive applications. Thomas emphasized that the fund tends to favor “more liquid and larger” companies, suggesting that a successful U.S. listing could eventually bring Kioxia into the fund’s investment universe.
Outlook
While Kioxia’s ADS offering is still in the planning stages, the company’s rapid stock appreciation and its role in the global AI supply chain have drawn attention from international investors. If the listing proceeds, it could serve as a catalyst for further capital inflows, reinforcing Japan’s position in the competitive AI semiconductor market.
For now, Voya’s Thomas remains cautiously optimistic, noting that the ultimate decision will depend on market conditions and regulatory approvals. Nonetheless, the prospect of a U.S. listing aligns with the fund’s broader goal of investing in high‑growth, liquid AI‑related assets.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
