SK Hynix explores deeper cooperation with Kioxia on NAND flash as AI demand reshapes memory market

SK Hynix, the world’s second-largest NAND flash memory producer, is actively exploring deeper collaboration with Japan’s Kioxia Holdings, the third-largest player in the space. CEO Kwak Noh-Jung confirmed on August 27 that while the company has no fixed plans for its existing stake in Kioxia, co-development opportunities in NAND flash are very much on the table. The timing is hard to ignore. The same day Kwak made his comments, Kioxia and its longtime partner SanDisk announced plans for over $31 billion in NAND production investments in Japan through 2032. Those plans are contingent on government support. The ownership angle that makes this interesting SK Hynix isn’t just a casual observer of Kioxia’s business. The South Korean chipmaker holds an indirect stake of approximately 14.19% in Kioxia through a Bain Capital special-purpose vehicle. That makes SK Hynix Kioxia’s single largest shareholder, edging out Toshiba, which reduced its holding to 14.12%. The investment traces back to 2018, when Bain Capital led the acquisition of what was then Toshiba Memory. SK Hynix’s contribution totaled roughly 395 billion yen, or about $2.48 billion at the time. Samsung controls roughly 31-32% ...