Shares of Kioxia Holdings surged 9.3% to ¥59,530 on September 8, capping a remarkable five-session run from ¥49,990 — a gain of roughly 19% in six trading days — after SK Group Chairman Chey Tae-won publicly floated joint production, research, and supply-chain cooperation with the Japanese NAND flash maker. The move signals that the world's second-largest memory chipmaker sees strategic value in deepening ties with Kioxia, but investors should weigh how much of this is real deal-making versus diplomatic signaling. SK Hynix and Kioxia Flirt With a NAND Super-Alliance — But Is the Stock Already Pricing In a Deal That Doesn't Exist Yet?
Shares of Kioxia Holdings rocketed 9.3% to ¥59,530 on Monday, extending a 19% rally over six sessions, after SK Group Chairman Chey Tae-won told Japan's Asahi Shimbun that jointly producing NAND flash memory with Kioxia is "one option" his conglomerate is weighing. The comments land at a moment when AI-driven storage demand has never been hotter — and the strategic math behind a tie-up has never been clearer.
Combined, They Would Overtake Samsung in NAND
Counterpoint Research estimated that Samsung led NAND shipments in Q2 2026 with a 25% share, followed by SK Hynix at 22% and Kioxia at 14%.
Together, the latter two account for a larger share than Samsung, although they remain separate competitors. A formal production alliance — even short of a merger — would give the pair significant pricing power in a market worth an estimated $58.7 billion this year, according to Mordor Intelligence.
Kioxia's Capacity Is Already Sold Out — More Supply Could Mean More Revenue
Kioxia officially confirmed in August that its entire 2026 NAND production run is already sold out, driven by the relentless build-out of AI infrastructure.
The company expects the NAND market to remain tight, with demand projected to exceed supply and bit growth reaching the high teens in 2026. Shared factory capacity with SK Hynix could unlock incremental output precisely when every chip commands a premium.
SK Hynix Has Already Put Real Money on the Table
SK Hynix invested about 4 trillion won in 2018 in the Bain Capital-led acquisition of former Toshiba Memory and currently holds convertible bonds tied to roughly 14.2% of Kioxia.
Chairman Chey warned that if cooperation prospects disappear, SK would end its investment entirely — framing the relationship as strategically binary: deepen or exit.
The Gap Between Talk and a Signed Deal Is Wide
SK Hynix CEO Kwak Noh-Jung acknowledged the company has "no fixed plans" for its Kioxia stake.
Chey said a specific investment plan could come by year-end , but Kioxia already runs a complex joint-venture manufacturing model with SanDisk, which would need to be reconciled. A nearly 20% rally on preliminary remarks from one chairman leaves little room for disappointment if talks stall. Investors chasing this rally are betting that a handshake becomes a contract — and that's a bet, not a certainty.