SK Hynix Research Deepens NAND Cooperation with Japan's Kioxia

en.Wedoany.com Reported - On August 27, SK Hynix CEO Kwak Noh-jung stated in West Lafayette, Indiana, USA, that the company is researching further cooperation with Japan's Kioxia and carefully evaluating how to jointly expand the NAND flash memory market with customers and suppliers. Regarding SK Hynix's equity arrangements in Kioxia, Kwak Noh-jung said there are currently "no confirmed plans," and the company has not yet determined its subsequent shareholding strategy.

SK Hynix and Kioxia currently have an indirect capital relationship. Kioxia's annual securities filings show that, as of March 31, 2026, BCPE Pangea Cayman2 held 77.4 million shares of Kioxia, representing 14.17% of issued common shares. SK Hynix holds bonds convertible into shares carrying almost all voting rights of BCPE Pangea Cayman2; under the agreement between the parties, SK Hynix may not hold more than 15% of Kioxia's total voting rights before 2028 without Kioxia's consent. As of the end of March 2026, the relevant bonds had not been converted.

On August 10, Kioxia confirmed that BCPE Pangea Cayman2 had become the company's largest shareholder. As of August 3, the entity still held 77.4 million shares, corresponding to 14.19% of voting rights; Toshiba's stake fell to 77,038,200 shares, with voting rights dropping to 14.12%, moving from the largest shareholder to the second largest. BCPE Pangea Cayman2's shareholding remained at 77.4 million shares both before and after this change in shareholder ranking.

On the same day Kwak Noh-jung made the above remarks, Kioxia and Sandisk announced a new round of Japan flash memory investment plans. The two parties plan to invest more than $31 billion, approximately ¥5 trillion, by 2032, with funds allocated to the Yokkaichi Plant, Kitakami Plant, and related infrastructure and technology. The investment implementation is conditional on government support. In January of this year, the two parties extended the Yokkaichi joint venture framework to December 2034, with the scope of cooperation including joint development and manufacturing of flash memory wafers.

On the same day, Kioxia commenced site preparation and related work for the construction of Fab3 at the Kitakami Plant in Iwate Prefecture. Fab3, located south of the existing Fab2, is planned to produce advanced 3D flash memory BiCS FLASH, with operations targeted to begin in fiscal year 2029. Specific construction progress and equipment investment plans will be determined based on market conditions, and the related investment plans are likewise conditional on government support.