Seoul [South Korea], September 2 (ANI): SK Group Chairman Chey Tae-won is contemplating constructing a chip plant in Japan, doubtlessly with NAND flash maker Kioxia, because the Korean conglomerate seeks deeper cooperation with its Japanese rival, in accordance with a news report by The Korea Herald.
Joint manufacturing is ‘one possibility,’ Chey mentioned in an interview with the Asahi Shimbun printed Tuesday throughout his go to to Tokyo. He additionally recognized provide chain coordination and joint analysis and improvement as potential areas of cooperation.
The transfer underscores SK hynix’s ambition to leverage its management in excessive bandwidth reminiscence to problem Samsung Electronics throughout the broader reminiscence market. It may additionally reshape the worldwide NAND trade, as SK hynix already holds an oblique stake in Kioxia.
‘Japan is a extremely enticing candidate by way of each threat and tradition,’ Chey mentioned, including that SK had obtained proposals from a number of native governments thinking about internet hosting the envisioned facility. He didn’t determine any potential areas.
Calling Kioxia ‘an organization with many strengths,’ Chey mentioned SK was able to turn into a accomplice if it may play a task within the Japanese chipmaker’s progress technique.
‘If SK hynix is to be included in Kioxia’s future technique, we’re all the time able to turn into a accomplice,’ he mentioned, pointing to Kioxia’s manufacturing partnership with SanDisk. Kioxia and SanDisk collectively function NAND crops in Japan however promote their merchandise individually.
Chey additionally prompt that SK may exit its funding in Kioxia if the 2 firms fail to forge a deeper partnership.
SK hynix competes instantly with Kioxia in NAND flash reminiscence, however can also be a serious oblique investor within the Japanese firm. SK hynix invested by means of a Bain Capital-led special-purpose firm shaped by the consortium that acquired Toshiba’s reminiscence enterprise. In August, the SPC grew to become Kioxia’s largest shareholder with a 14.19 % stake.
SK hynix holds securities convertible into shares carrying many of the SPC’s voting rights, doubtlessly increasing its affect over Kioxia. An present settlement, nevertheless, prevents SK hynix from holding 15 % or extra of Kioxia’s direct or oblique voting rights with out its consent till 2028.
SK Group can also be reportedly exploring acquisitions of Japanese semiconductor supplies and tools firms, pointing to a broader effort to ascertain a stronger foothold within the nation’s chip ecosystem.
Deeper ties between SK hynix and Kioxia may alter the aggressive dynamics of the worldwide NAND market. Counterpoint Research estimated that Samsung Electronics led NAND shipments within the second quarter of 2026 with a 25 % share, adopted by SK hynix with 22 % and Kioxia with 14 %. Together, the latter two account for a bigger share than Samsung, though they continue to be separate rivals.
Chey’s remarks come as SK hynix strengthens its place in high-bandwidth reminiscence, or HBM, utilized in AI techniques and information facilities. Surging demand has pushed the corporate to report earnings, giving it larger firepower to broaden past HBM.
Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University, mentioned SK hynix seems prepared to make use of the income and confidence gained from its HBM management to pursue the highest place within the broader reminiscence market.
‘Expanding manufacturing capability is important in semiconductors,’ Lee mentioned. ‘SK hynix seems to see Kioxia as a accomplice that would strengthen its NAND place and assist it problem Samsung.’
SK hynix can also be working with US-based SanDisk to develop world requirements for high-bandwidth flash, or HBF. The rising expertise stacks NAND chips to enhance efficiency and capability, utilizing a construction much like HBM. Kioxia’s long-standing partnership with SanDisk may give SK hynix an extra strategic benefit in growing the expertise.
Unlike Samsung, whose companies span reminiscence, foundry companies and client electronics, SK hynix can focus its sources on reminiscence chips. The AI trade’s shift from mannequin coaching towards inference is predicted to spice up demand for high-capacity NAND storage and doubtlessly create a brand new marketplace for HBF, Lee mentioned.
Japan’s power in semiconductor supplies and tools additionally makes it a beautiful manufacturing base that SK hynix can’t afford to miss, he added. (ANI)