SK chief says joint production with Japan’s Kioxia is ‘one option’

Joint production with Kioxia is “one option,” SK Group Chairman Chey Tae-won said in an interview with Japan’s Asahi Shimbun, opening the door to a deeper relationship between the two memory-chip companies.

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One option.

Chey said Kioxia had “many strengths” and that SK hynix would be ready to become a partner if it became part of the Japanese company’s future strategy. Asahi interpreted his comments as covering possible cooperation in manufacturing, research and development, and supply chains. It also reported that SK hynix was considering building a plant in Japan.

SK hynix currently holds 129 billion yen in Kioxia convertible bonds through a special-purpose company linked to Bain Capital. The vehicle owns a 14% stake in Kioxia and became the company’s largest shareholder last month, replacing Toshiba. If SK hynix converts the bonds into shares, Asahi said it could gain most of the voting rights in the special-purpose company and strengthen its influence over Kioxia’s management.

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Kioxia is a company with many strengths.

Kioxia held a 14% share of global NAND memory shipments in the second quarter, matching China’s Yangtze Memory Technologies. Samsung Electronics led with 25%, followed by SK hynix with 22%, according to Counterpoint Research.

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If we can no longer establish any cooperative relationship with Kioxia, we will end the investment.

Chey also warned that SK hynix would end its investment if the companies could no longer build any cooperative relationship. He is reportedly examining overseas plant construction amid a global shortage of memory semiconductors. Kioxia said the companies already collaborate on MRAM research and that it wanted to maintain a good relationship with SK hynix, one of its memory-chip suppliers.

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SK hynix and Kioxia are already collaborating in MRAM research and development, and we want to maintain a good relationship going forward.