Forecast Trend Report by Period
SK Hynix is considering building a joint production facility in Japan to meet rising memory demand driven by the expansion of artificial intelligence.
Bloomberg reported on August 31 that SK Group Chairman Chey Tae-won said at a Korea-Japan Chamber of Commerce meeting in Sendai that SK Hynix is reviewing the possibility of establishing a joint memory chip plant in Japan. The company has not yet selected a partner or a specific site.
Chey said SK Hynix is looking across Japan for potential locations. Any site with sufficient power and water supply could be considered. He did not identify any potential joint-venture partner.
SK Hynix has been expanding production capacity at home and abroad to keep pace with stronger memory demand tied to growth in the AI industry. In South Korea, it plans to expand chip manufacturing facilities with a 54 trillion won investment. In West Lafayette, Indiana, it is building an advanced memory packaging facility and held a groundbreaking ceremony there last week.
The review of a production facility in Japan also fits with efforts to deepen cooperation with local customers and suppliers. SK Hynix indirectly holds a stake in Japanese NAND flash maker Kioxia Holdings. Chief Executive Officer Kwak Noh-jung also recently said the company is closely examining ways to develop the NAND market together with customers and suppliers.
Demand for NAND flash as well as high-bandwidth memory has been rising as investment in AI data centers expands. Big Tech companies including Meta and Amazon are building large-scale AI infrastructure, increasing purchases of faster data-storage devices than traditional hard drives.
Japan is home to many of SK Hynix's suppliers, including chip-equipment maker Tokyo Electron, as well as major customers such as Sony and Nintendo. Rival Micron Technology already operates a semiconductor plant in Hiroshima. The Japanese government has also provided large subsidies for local production investments by overseas chipmakers, including Taiwan Semiconductor Manufacturing Co.
Chey also stressed the need for economic cooperation between South Korea and Japan at the event. As chairman of the Korea Chamber of Commerce and Industry, he cited issues including shrinking labor forces in the two countries and said it is time for South Korea and Japan to form an economic bloc.
