SK Group Chairman Chey Tae-won said Monday that SK hynix is still reviewing the possibility of establishing a joint venture semiconductor plant in Japan, amid reports that the Korean chipmaker is considering building a facility in the neighboring country.
On the sidelines of a meeting between representatives of the Korean and Japanese chambers of commerce in Sendai, Chey was quoted as saying, “We are in the process of studying it, and as soon as we finish, I will let you know,” when asked whether SK hynix would invest in Japan to build a chip production facility or establish a joint venture with a Japanese company to produce memory chips. He left without providing further details on potential sites in Japan, whether the plant would be built as a joint venture or who the potential partner might be.
Chey had previously described Japan as “a very strong candidate” for potential overseas chip capacity expansion, citing its established semiconductor ecosystem and concentration of equipment and materials companies. Japan’s willingness to subsidize semiconductor investments could further support the expansion, according to Barchart, which also noted that Miyagi Prefecture is among locations seeking to attract the investment. SK hynix has an indirect stake in Kioxia Holdings.
SK hynix is pursuing overseas expansion while continuing to invest in Korea. On Thursday, the company broke ground for an advanced high-bandwidth memory packaging fab in West Lafayette, Indiana. Barchart reported that the facility represents a $4 billion investment. The company also plans to invest 54 trillion won ($39 billion) to expand semiconductor production facilities in Korea.
The potential Japan expansion is part of SK hynix’s broader global capacity strategy as it seeks to capitalize on surging AI-driven demand for memory chips. Barchart reported that the memory shortage is expected to persist through 2030. The company is a major supplier of high-bandwidth memory, positioning it at the center of the global artificial intelligence infrastructure boom.
SK hynix is headquartered in Icheon, Gyeonggi-do, South Korea, where it manufactures and sells memory and other semiconductor products. The company had a market cap of approximately $1.1 trillion, making it one of the world’s largest semiconductor companies.
Barchart reported that SK hynix’s U.S.-listed shares have delivered a highly volatile performance since their Nasdaq debut, with each American Depositary Receipt representing one-tenth of a common share. The U.S. IPO was reportedly more than seven times oversubscribed. The stock is up 12% over the past month.
In the second quarter, SK hynix’s net profit surged 1,242% year-over-year to KRW 9 trillion ($0.07 trillion), according to Barchart. Management also secured long-term supply agreements with about 10 key customers.
Analysts have expressed optimism about the stock. Needham raised its price target to $220 from $200 on Aug. 24, maintaining a “Buy” rating. Barclays reiterated its “Overweight” rating and maintained a $300 price target on Aug. 20. Rosenblatt Securities initiated coverage with a “Buy” rating and a $320 price target on Aug. 4. According to Barchart, the consensus rating is “Strong Buy,” based on 15 analysts: 11 Strong Buy, two Moderate Buy, and two Hold.