SK Hynix has indirectly become the largest shareholder of Kioxia via SPC2, holding a 14.19% stake.

SK Hynix has become the largest shareholder of Japanese NAND flash manufacturer Kioxia indirectly via the special purpose company SPC2 it invested in. Kioxia disclosed that its largest shareholder has changed from Toshiba to BCPE Pangea Cayman2 (SPC2), which currently holds a 14.19% stake in the firm. Toshiba previously held a 15.10% stake in Kioxia, but after selling shares in seven tranches between July 15 and August 3, its holding dropped to 14.06%—lower than SPC2’s 14.19%. In 2018, SK Hynix invested approximately 4 trillion won in Kioxia via two special purpose companies, with SPC2 (which it retains) accounting for around 1.3 trillion won of that total, structured as convertible bonds. If the relevant convertible bonds are converted into shares, SK Hynix could become a voting shareholder of Kioxia. However, for SK Hynix to obtain voting rights, it still needs approval from competition laws and antitrust regulators across multiple countries. The Japanese government may also reject the application over concerns for protecting its domestic semiconductor supply chain, so the possibility of SK Hynix directly influencing Kioxia’s operations remains low for now. Kioxia is Japan’s largest NAND flash manufacturer, and currently ranks third in global NAND market share, trailing Samsung Electronics and SK Hynix.