SK Hynix eyes memory chip plant in Japan, a first for a South Korean chipmaker

South Korea's SK Hynix ↗ 2.78% is considering building a memory semiconductor manufacturing facility in Japan's Miyagi Prefecture, with the investment potentially running into tens of trillions of won, according to a report by The Hankyoreh newspaper published on Friday.theedgemarkets+1

The project, if confirmed, would mark the first large-scale semiconductor manufacturing investment in Japan by a South Korean chipmaker.reuters+1

A New Production Base in Northeastern Japan

The Hankyoreh reported, citing industry sources, that SK Group chairman Chey Tae-won recently visited the Miyagi region, which is among three areas — alongside Kyushu and Hokkaido — that Japanese authorities are positioning as semiconductor hubs.investmentmonitor+1

The proposed facility would be more modest in size than SK Hynix's Yongin-Honam cluster in South Korea but is positioned as a separate overseas production base to build up capacity against the backdrop of a persistent global shortage of memory chips.investmentmonitor

Responding to the report, SK Hynix said no decision had been made but noted that "any location with the necessary infrastructure could be a potential candidate," according to Reuters.reuters

Japan's Growing Chip Ecosystem

Were the project to proceed, SK Hynix would become the third overseas firm running a chip manufacturing plant on Japanese soil, joining U.S.-based Micron Technology ↗ 5.12% and Taiwan's TSMC ↗ 6.33%.finance.yahoo+1

The report also suggested that a Japan-based investment by SK Hynix could add pressure from Washington on Seoul's government and its chipmakers to expand memory chip manufacturing capacity on U.S. soil.finance.yahoo

Separately, Sony and TSMC are preparing to launch mass production of advanced image sensor chips at a facility in Kumamoto, southwestern Japan, backed by an investment of roughly ¥1 trillion, with production expected to begin as early as 2029.finance.yahoo

Shares of SK Hynix rose more than 4% following the report.finance.yahoo