KB News Desk
Chey Tae-won weighs joint production and R&D as chipmaker seeks to challenge Samsung across memory market
SK Group Chairman Chey Tae-won is considering building a chip plant in Japan, potentially with NAND flash maker Kioxia, as the Korean conglomerate seeks deeper cooperation with its Japanese rival.
Joint production is “one option,” Chey said in an interview with the Asahi Shimbun published Tuesday during his visit to Tokyo. He also identified supply chain coordination and joint research and development as potential areas of cooperation.
The move underscores SK hynix’s ambition to leverage its leadership in high bandwidth memory to challenge Samsung Electronics across the broader memory market. It could also reshape the global NAND industry, as SK hynix already holds an indirect stake in Kioxia.
“Japan is a highly attractive candidate in terms of both risk and culture,” Chey said, adding that SK had received proposals from several local governments interested in hosting the envisioned facility. He did not identify any potential locations.
Calling Kioxia “a company with many strengths,” Chey said SK was ready to become a partner if it could play a role in the Japanese chipmaker’s growth strategy.
“If SK hynix is to be included in Kioxia’s future strategy, we are always ready to become a partner,” he said, pointing to Kioxia’s production partnership with SanDisk. Kioxia and SanDisk jointly operate NAND plants in Japan but sell their products separately.
Chey also suggested that SK could exit its investment in Kioxia if the two companies fail to forge a deeper partnership.
SK hynix competes directly with Kioxia in NAND flash memory, but is also a major indirect investor in the Japanese company. SK hynix invested through a Bain Capital-led special-purpose company formed by the consortium that acquired Toshiba’s memory business. In August, the SPC became Kioxia’s largest shareholder with a 14.19 percent stake.
SK hynix holds securities convertible into shares carrying most of the SPC’s voting rights, potentially expanding its influence over Kioxia. An existing agreement, however, prevents SK hynix from holding 15 percent or more of Kioxia’s direct or indirect voting rights without its consent until 2028.
SK Group is also reportedly exploring acquisitions of Japanese semiconductor materials and equipment companies, pointing to a broader effort to establish a stronger foothold in the country’s chip ecosystem.
Deeper ties between SK hynix and Kioxia could alter the competitive dynamics of the global NAND market. Counterpoint Research estimated that Samsung Electronics led NAND shipments in the second quarter of 2026 with a 25 percent share, followed by SK hynix with 22 percent and Kioxia with 14 percent. Together, the latter two account for a larger share than Samsung, although they remain separate competitors.
Chey’s remarks come as SK hynix strengthens its position in high-bandwidth memory, or HBM, used in AI systems and data centers. Surging demand has driven the company to record earnings, giving it greater firepower to expand beyond HBM.
Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University, said SK hynix appears ready to use the profits and confidence gained from its HBM leadership to pursue the top position in the broader memory market.
“Expanding production capacity is critical in semiconductors,” Lee said. “SK hynix appears to see Kioxia as a partner that could strengthen its NAND position and help it challenge Samsung.”
SK hynix is also working with US-based SanDisk to develop global standards for high-bandwidth flash, or HBF. The emerging technology stacks NAND chips to improve performance and capacity, using a structure similar to HBM. Kioxia’s long-standing partnership with SanDisk could give SK hynix an additional strategic advantage in developing the technology.
Unlike Samsung, whose businesses span memory, foundry services and consumer electronics, SK hynix can concentrate its resources on memory chips. The AI industry’s shift from model training toward inference is expected to boost demand for high-capacity NAND storage and potentially create a new market for HBF, Lee said.
Japan’s strength in semiconductor materials and equipment also makes it an attractive production base that SK hynix cannot afford to overlook, he added.
