SK Hynix open to more US semiconductor investments
What's the story
SK Hynix's CEO, Kwak Noh-jung, has said that the company is open to more semiconductor investments in the US. The statement comes as he predicts a global memory chip shortage until 2030. "We are always open (for more investment), but nothing has been decided," Kwak told reporters after the groundbreaking ceremony for an advanced packaging plant in West Lafayette, Indiana.
Expansion plans
Global site search for development and testing needs
Kwak revealed that SK Hynix is looking for potential global sites to support its development and testing needs.
He said factors like power, water, and government incentives are key considerations in this search.
"If there is a location that can provide sufficient infrastructure and resources, we are open to anywhere," he said.
Market shift
AI's impact on memory chip industry
Kwak also spoke about how AI is changing the memory chip industry from a commodity-based model to one focused on partially or fully customized chips.
This shift is likely to make the industry's traditional boom-and-bust cycles less severe.
"Now, our products are either partly customized or completely customized," he said, adding that closer coordination with customers would give chipmakers greater visibility into future demand.
Strategic moves
AI co. to be investment vehicle for start-ups and companies
Kwak also revealed that the company's newly established AI Co. would be an investment vehicle for start-ups and companies that could support its next businesses.
This includes those offering coordination with its existing memory operations.
On Solidigm, SK Hynix's NAND subsidiary, Kwak said a potential US initial public offering is still under review but no decision has been made yet on withdrawing the plan.
Strategic interests
On stake in Japan's Kioxia
Kwak also said no decision has been made on SK Hynix's stake in Japan's Kioxia.
However, he hinted that the company is looking for ways to deepen its involvement in Japan's chip industry.
"Just as we want to contribute to the AI industry in the US, we also want to contribute to Japan's semiconductor industry," he said, adding, "We are carefully looking at how we can grow the market together."