Bloomberg reported on the 31st that Chey Tae-won, chairman of SK Group, is considering establishing a semiconductor joint plant for SK hynix in Japan.
According to Bloomberg News, in an interview during his visit to Japan to attend the Korea-Japan Chambers of Commerce chairmen's meeting held in Sendai, Japan, Chey said he is reviewing the feasibility of setting up a joint memory-chip plant in Japan as one way to respond to surging artificial intelligence (AI) demand and cut production expense.
Chey said, "We are looking across Japan. We are considering anywhere with ample electricity and water." He did not answer questions about potential partners or specific plant locations.
Bloomberg assessed that this move is part of SK hynix's broader effort to strengthen cooperation with customers and partners in Japan.
A person familiar with the matter said SK hynix could also consider acquiring Japanese corporations on a small scale. The person added that the specific form of cooperation, such as co-investment or establishing a joint venture, would vary by partner and products to be manufactured.
SK hynix holds about 14% equity in Japanese flash memory maker Kioxia through a special purpose company (SPC) managed by Bain Capital. Kwak Noh-jung, SK hynix chief executive officer (CEO), said last week, "We are carefully reviewing ways to co-develop the NAND flash market with customers and partners."
Chey, who also serves as Korea Chamber of Commerce and Industry chairman, said at an event held ahead of the Korea-Japan Chambers of Commerce chairmen's annual meeting on the theme of declining labor populations in both countries, "Now is the time for Korea and Japan to form an economic bloc."
Meanwhile, SK pushed back on Bloomberg's report, saying, "Chey did not specifically mention plans for investment in Japan and only said, 'We are in the process of studying.'"