Chey Tae-won Hints at Korea-Japan Semiconductor Cooperation: “Multi-Faceted Collaboration with Kioxia Possible”

Exploring Options to Address AI Memory Supply Shortage

Chey Tae-won, Chairman of SK Group, has indicated that joint production with Japanese NAND flash maker Kioxia is "one option" as the company responds to surging demand for artificial intelligence (AI) semiconductors.

According to industry sources on September 3, Chairman Chey, in a recently published interview with Japan’s Asahi Shimbun, highlighted Kioxia’s technological strengths and said, "There are various possibilities for collaboration such as joint production, research and development (R&D), and sharing of supply chains." He added that investing in production facilities within Japan is also being considered as one of several options.

Chairman Chey Tae-won of the Korea Chamber of Commerce and Industry delivered the opening remarks at the "15th Korea-Japan Chamber of Commerce Presidents' Meeting," held on the 31st of last month at the Westin Sendai Hotel in Japan. Photo by Yonhap News

SK hynix remains a competitor to Kioxia in the NAND flash market, while also holding a stake through indirect investment. Chairman Chey cited Kioxia’s existing joint venture with US-based SanDisk to co-produce core products as an example, emphasizing, "If SK hynix becomes a part of Kioxia’s future strategy, we are ready to partner at any time."

This new investment plan stems from his recent assessment that, with the rise of generative AI, the supply of memory semiconductors for data centers is "20 to 30 percent short." Chairman Chey has been actively exploring ways to establish new production hubs overseas—including in Japan—since large-scale domestic investments alone are unlikely to keep pace with surging market demand. He specifically pointed to Japan as an attractive candidate, noting the country's concentration of semiconductor equipment and materials companies, its robust production infrastructure, and its manufacturing-centric culture. "From a risk and cultural standpoint, it is a very appealing location," he said.

If the two companies were to form an alliance, it would inevitably shift the global NAND market landscape. According to Counterpoint Research, Samsung Electronics led the global NAND flash shipments in the second quarter of this year with a 25 percent market share, followed by SK hynix with 22 percent. When combining the shares of the third-ranked Kioxia (14 percent) and SK hynix, their total reaches 36 percent, surpassing Samsung’s share.

SK hynix stated that Chairman Chey's interview with Asahi Shimbun signals that semiconductor cooperation with Japan is being considered as one of several options, and clarified that the company is not currently considering ending joint production or investments with any specific business partner.

This content was produced with the assistance of AI translation services.