SK Hynix has indirectly become the largest shareholder of Kioxia through a special-purpose vehicle, BCPE Pangea Cayman2 (SPC2) , which now holds 14.19% of the Japanese NAND flash maker – narrowly surpassing Toshiba’s 14.06% after Toshiba sold shares over seven trading sessions from July 15 to August 3.

The structure dates back to 2018, when SK Hynix set up two SPVs to invest a total of ¥4 trillion in Kioxia. After Bain Capital exited in June 2026, SPC1’s stake was fully liquidated. SK Hynix now retains only SPC2’s convertible bonds (¥1.3 trillion) , which – if converted – would grant ordinary voting shares in Kioxia.

Kioxia is Japan’s largest NAND manufacturer and ranks third globally behind Samsung and SK Hynix itself.

However, SK Hynix remains a financial investor for the foreseeable future. Converting the bonds into voting shares requires multiple antitrust approvals – and Japan is unlikely to permit a Korean entity gaining operational influence over a domestic memory champion. SK Hynix will not participate in Kioxia’s management or strategy.

ICgoodFind Take:
Largest shareholder, zero control. This is a financial play – not an operational takeover. For procurement, Kioxia’s capacity and allocation remain independent. Watch for regulatory noise but no supply-chain changes – yet.