SK Hynix has become Kioxia's largest shareholder indirectly through SPC2, with a holding of 14.19%.

August 11th. SK Hynix indirectly became the largest shareholder of Japan's NAND manufacturer Kioxia through its investment special purpose company SPC2. Kioxia disclosed that the company's largest shareholder has changed from Toshiba to BCPE Pangea Cayman2 (SPC2), which currently holds 14.19% of Kioxia's shares.

Prior to this, Toshiba held 15.10% of Kioxia's shares. However, after selling shares seven times between July 15th and August 3rd, its ownership stake dropped to 14.06%, below SPC2's 14.19%. SK Hynix had previously invested approximately 4 trillion Korean won in Kioxia through two SPCs in 2018, with the remaining SPC2 investment size being around 1.3 trillion Korean won, made through convertible bonds.

If the convertible bonds are converted into stocks, SK Hynix could become a shareholder with voting rights in Kioxia. However, for SK Hynix to gain voting rights, it still needs approval from various countries' competition and antitrust regulators. Considering Japan's perspective of protecting its domestic semiconductor supply chain, the Japanese government may not approve it. Therefore, currently, the possibility of SK Hynix directly influencing Kioxia's operations remains low.

Kioxia is Japan's largest-scale NAND manufacturer, currently ranking third globally in NAND market share after Samsung Electronics and SK Hynix.