Chey Tae-won: "Considering Additional Investment in U.S. Semiconductor Fabs"

[Financial News New York·Seoul = Reporter Lee Byung-chul, Reporter Jo Eun-hyo] Chey Tae-won, chairman of SK Group, said, "Now is the time when the world needs to expand semiconductor supply capacity itself," adding, "If the right location and conditions are in place, additional investment in semiconductor production facilities in the United States is possible." The remarks suggest that, alongside about 1,100 trillion won in investment in domestic chip plants in Yongin, Gwangju, and Cheongju, the group also plans to expand semiconductor production bases overseas at the same time. Analysts say the plan aligns with the global chip industry’s current race to expand capacity.
Chey said in an interview with CNBC and at a meeting with New York correspondents on the 10th local time, shortly after SK hynix's Nasdaq listing for its American Depositary Receipt (ADR), that the company is also reviewing additional investment beyond its advanced packaging facility in Indiana. He added that if conditions such as power, water, labor, and supply chains are met, building a memory production plant would also be possible. This was the second time Chey has publicly raised the possibility of investing in an overseas semiconductor fab, following comments made during a business trip to Japan last month.
Chey stressed that this is "a strategy to expand global supply capacity." He said, "This is not about moving a production base from one country to another. It is about expanding semiconductor supply capacity itself worldwide."
SK hynix is reportedly reviewing the construction of a semiconductor fab in addition to its roughly $4 billion artificial intelligence memory packaging facility in Indiana. The remarks on U.S. investment also drew attention because they came shortly after reports that Howard Lutnick, the United States Secretary of Commerce, said he wanted to bring Samsung Electronics and SK hynix to the United States to build semiconductor production facilities. That has intensified interest in SK Group's next moves.
Chey also dismissed recent talk in the U.S. market about weakening semiconductor demand and a possible peak in chip stocks, saying, "In the AI era, the demand structure for semiconductors itself is different." He added, "Even after announcing plans to double production capacity within five years, customers are saying that is not enough and are asking for more supply of high-bandwidth memory (HBM) as well as DRAM."
Meanwhile, SK hynix's stock jumped 13% on its first day on Nasdaq in New York, earning it a place in the $1 trillion market capitalization club.
Wall Street and foreign media widely described the move as "a new phase in the AI memory supercycle," while also pointing to several challenges, including whether the Korea Discount can be resolved, competition from Samsung Electronics and Micron, and the need to expand production capacity.
ehcho@fnnews.com Reporter