TLDR
- SK Hynix is studying the feasibility of a joint venture to build a memory chip plant in Japan
- SK Group Chairman Chey Tae-won said the company is “looking all over Japan” for sites with good power and water supply
- Japan’s Miyagi Prefecture is actively pitching a 300,000-square-meter site to SK Hynix
- The move is part of SK Hynix’s broader global expansion to meet AI-driven memory demand
- SK Hynix expects the global memory shortage to persist through 2030
SK Hynix is exploring a potential joint venture to build a memory chip facility in Japan, as the South Korean chipmaker looks to expand production capacity to meet growing AI demand.
SK Group Chairman Chey Tae-won confirmed the discussions on the sidelines of meetings between South Korea and Japan’s chambers of commerce in Sendai. No final decision has been made on a site, investment size, or partner.
“We are looking all over Japan,” Chey said. “Anywhere with good power and good water.”
The Japan search is part of SK Hynix’s wider push to build out global production. The company recently held a groundbreaking ceremony for a chip packaging facility in West Lafayette, Indiana, and is planning a 54 trillion won ($39 billion) expansion of its facilities in South Korea.
Miyagi Prefecture Makes Its Pitch
Japan’s Miyagi Prefecture is making an aggressive push to land the plant, offering a 300,000-square-meter site along with upgraded water and power infrastructure suited for semiconductor production.
The Japanese government has shown a willingness to heavily subsidize international chipmakers. Taiwan Semiconductor Manufacturing Co. has already benefited from that approach, and SK Hynix could be next in line.
SK Hynix rival Micron Technology already operates a factory in Hiroshima. Japan is also home to a number of SK Hynix suppliers, including Tokyo Electron, as well as customers like Sony and Nintendo.
NAND and HBM Demand Drive Expansion
The company already holds an indirect stake in Kioxia Holdings, the Tokyo-based flash memory producer. CEO Kwak Noh-jung last week said SK Hynix is “carefully looking at how we can co-develop the NAND flash market with our customers and suppliers.”
Both high-bandwidth memory and NAND flash have seen a surge in demand as companies like Meta and Amazon race to build out data storage infrastructure capable of handling AI workloads.
SK Hynix’s products are a key component in Nvidia’s AI chips, which has made the company one of the most important players in the current AI buildout.
The company expects the global memory shortage to persist through 2030, making capacity expansion a priority for the years ahead.
Chey also used the Sendai meetings to make a broader point about regional economic cooperation. “Now is the time for Korea and Japan to form an economic bloc,” he said at an event focused on the two countries’ shrinking workforces.
No timeline has been given for a decision on the Japan venture.
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