SK Hynix is studying the feasibility of forming a joint venture to manufacture memory chips in Japan to address growing AI-driven memory demand and manage production costs [1, 2, 3, 4]. The company is examining multiple locations across Japan, focusing on sites with stable power and water supply, according to SK Inc chairman Chey Tae-won, who said, "We are looking all over Japan. Anywhere with good power and good water" [1].

The potential plant could be located in Miyagi Prefecture, with an investment possibly reaching several tens of trillions of Korean won, the report said. The joint venture's structure and the types of products to be produced will depend on partners and market conditions [1, 4]. Cooperation with Japanese semiconductor firm Kioxia is among the options considered [5].

This plant would represent SK Hynix’s first large-scale semiconductor manufacturing investment in Japan [4]. The government of Japan has been actively subsidizing and encouraging overseas semiconductor investments, making the country an attractive site for expansion [3, 4].

SK Hynix also recently held a groundbreaking ceremony for a chip packaging facility in Indiana, United States, and is considering further international expansion [1, 2, 3, 4]. The company announced plans earlier this month to invest 54 trillion Korean won (approximately US$39 billion) to expand DRAM and NAND wafer fabs in Yongin and Cheongju, South Korea [1, 3, 4].

Chairman Chey Tae-won suggested broader economic cooperation between South Korea and Japan could be beneficial, saying, "現在正是韓國與日本組成經濟聯盟的時候" (Now is the time for Korea and Japan to form an economic alliance) [3]. SK Hynix CEO Koo Kwang-mo has said the company is carefully evaluating how to collaborate with customers and suppliers to develop the NAND flash memory market [3].

A small-scale acquisition of a Japanese company is also under consideration as part of SK Hynix's expansion plans [1].

The company publicly confirmed its evaluation of the Japan plant joint venture on August 31 during Korean-Japanese chamber of commerce meetings in Sendai [1, 2, 3, 4]. The next step appears to be continuing feasibility studies and partner discussions to finalize investment decisions and locations.