Due to the AI Boom, SK Hynix weighs a new memory plant deal

SK Hynix is now checking the feasibility of future memory chip manufacturing in Japan. This is mainly driven by high AI demand while also helping control production costs.

Details regarding the future intentions of SK Hynix

SK chairman Chey Tae-won said the company is looking for a location in Japan with reliable water and power supply. There have not been any specific details regarding the location or even a product that would be manufactured there yet.

From the insight information, it is possible that there will be some sort of collaboration, joint venture, or co-investment involved during the product manufacturing. However, the details regarding the insight source and future project are not yet clear.

SK Hynix is actively searching for chip production sites to deal with the current demand for AI storage. The company is planning to expand its chipmaking in Korea and is also building a memory packaging facility in West Lafayette, Indiana. 

Current information about the search in Japan is considered to be a part of a wider planning strategy for the improvement of cooperation with local suppliers and customers. As of now, the company is holding an indirect stake in Kioxia Holdings.

Together with the increase in demand for high-bandwidth memory, there is also a noticeable increase in the demand for NAND. Furthermore, the Japanese government is planning to subsidize the projects connected with chipmakers that are expanding production in the country.

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