SK Hynix-Kioxia tie-up could create world’s largest NAND player, Chey says

  • Chey Tae-won outlined possible SK Hynix-Kioxia cooperation, including joint production in Japan.
  • SK Hynix and Kioxia would hold 36% of global NAND market share combined.
  • SK Hynix holds about ¥129 billion in Kioxia convertible bonds.

SK Group Chairman Chey Tae-won said SK Hynix and Japan’s Kioxia could cooperate on joint production, research and development, and supply-chain sharing, including a possible plant in Japan. Their combined NAND market share would reach 36%, exceeding Samsung Electronics’ 25% and creating the world’s largest player, based on Counterpoint Research data for the second quarter. SK Hynix holds about ¥129 billion of Kioxia convertible bonds that could convert into a roughly 15% direct stake, although cooperation faces antitrust reviews, a voting-ownership limit through 2028, and opposition from the Japanese government. Chey said data-center memory supply is 20% to 30% below demand and that Japanese suppliers and local governments make the country attractive for expansion. He also said SK would end its Kioxia investment if a cooperative relationship could not be established. Existing cooperation includes SK Hynix’s MRAM research with Kioxia and DRAM supply to the company.

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