SK Hynix Chairman Chey Tae-won announced on 10일 (local time) in New York that the company is considering building memory production facilities in the United States, contingent on meeting requirements for power, water, labor, and supply chain infrastructure. The statement came during an ADR listing ceremony interview with CNBC, one day after US Commerce Secretary Howard Lutnick publicly urged Samsung and SK Hynix to expand memory production in the US. The announcement reflects the Trump administration's strategy to restructure AI-era semiconductor supply chains around domestic manufacturing, with SK Hynix's Nasdaq ADR listing positioning the Korean stocks for increased US investor access amid mounting pressure for local production commitments.
Chey Tae-won Announces Potential US Memory Fab Investment Conditions
Chey Tae-won stated during the 10일 (local time) ADR listing event in New York that "in addition to the advanced packaging facility in Indiana, we are reviewing additional investments" and "if conditions such as power, water, labor, and supply chain are met, memory production factory construction is also possible," according to his CNBC interview. Chey added that investments of tens of billions of dollars could be made in AI data centers, related technologies, and joint ventures beyond memory factories. SK Hynix is currently investing $3.87 billion (approximately 5.6 trillion won) to build an advanced packaging production base in West Lafayette, Indiana, and established an AI solution company tentatively named "AI Company" in the US earlier this year.
SK Hynix CEO Forecasts Industry's Most Difficult Supply Year
SK Hynix CEO Kwak Noh-jung stated on the ADR listing day in interviews with Bloomberg and Reuters that "next year will be the most difficult year in industry history from a supply perspective," presenting the possibility that current memory supply shortages could continue until after 2030. Kwak explained that customers are entering long-term supply contracts because they expect the supply shortage to be prolonged. Market observers also expect AI memory shortages to continue for several years, with SK Hynix maintaining its position as the largest supplier. SK Hynix announced plans last month to build a 1,100 trillion won domestic AI memory production belt centered on the Yongin semiconductor cluster, Cheongju, and the Honam region.
US Commerce Secretary Publicly Urges Korean Chipmakers to Build US Facilities
US Commerce Secretary Howard Lutnick publicly called for Samsung and SK Hynix to expand memory production in the US 전날 at a Micron factory event in New York, stating "I want to bring Samsung and SK Hynix to the United States to build production facilities." The US government's demand for expanded memory production facilities stems from a strategy to reorganize the AI-era core semiconductor supply chain around domestic manufacturing. The Trump administration is pursuing policies to expand the US semiconductor manufacturing base and build an AI core supply chain centered on the United States. Industry observers note that compared to SK Hynix's large-scale domestic investment, the scale of US investment is relatively small, suggesting the US government is likely to demand additional investment expansion.
FAQ
What did SK Hynix Chairman Chey Tae-won announce on 10일 (local time)?
Chey Tae-won announced during an ADR listing ceremony interview with CNBC on 10일 (local time) in New York that SK Hynix is considering building memory production facilities in the United States if conditions for power, water, labor, and supply chain are met, in addition to the company's existing advanced packaging facility investment in Indiana.
Why did SK Hynix CEO say next year will be the most difficult supply year?
CEO Kwak Noh-jung stated in interviews with Bloomberg and Reuters on the ADR listing day that "next year will be the most difficult year in industry history from a supply perspective," citing prolonged memory supply shortages that could continue until after 2030, with customers entering long-term supply contracts due to expected supply constraints.
What did US Commerce Secretary Howard Lutnick say about Korean chipmakers?
US Commerce Secretary Howard Lutnick publicly stated 전날 at a Micron factory event in New York that he wants to bring Samsung and SK Hynix to the United States to build production facilities, reflecting the Trump administration's strategy to reorganize AI-era semiconductor supply chains around domestic US manufacturing.
