SK Hynix eyes Japan chip plant amid global shortage – report

SK Hynix is reportedly considering a memory semiconductor manufacturing facility in Japan’s Miyagi Prefecture, with investment potentially running into tens of trillions of won, The Hankyoreh reported. The proposal remains unconfirmed. If completed, the project would be the first major Japanese production facility established by a South Korean chipmaker. Miyagi, in Honshu’s Tohoku region, is one of three areas Japan is positioning as semiconductor hubs, alongside Kyushu and Hokkaido. An unnamed industry source said SK Group chairman Chey Tae-won recently visited the region. The translated report said the proposed facility would be more modest than SK Hynix’s Yongin-Honam cluster in South Korea, where the company is reportedly considering investment beyond its original plans. The Japanese plant would be a separate overseas production base, rather than part of the Yongin-Honam development. The reported plan would build capacity amid a persistent global shortage of memory chips. If it proceeds, SK Hynix would become the third overseas company operating a chip manufacturing plant in Japan, after US-based Micron and Taiwan’s TSMC. For investors, a Japanese facility could diversify SK Hynix’s manufacturing footprint and align the company with Japan’s semiconductor expansion strategy. It could also intensify existing pressure from Washington on Seoul and South Korean chipmakers to expand memory production in the United States, creating a strategic trade-off between competing overseas investment priorities. Separately, Sony Group and TSMC were reported earlier this month to be preparing mass production of advanced image sensor chips at a facility in Kumamoto, southwestern Japan. The project carries roughly Y1tn ($6.29bn) of investment, split approximately 60:40 between Sony and TSMC, with production expected to start as early as 2029. SK Hynix’s investment scale, timing and production plans remain uncertain pending confirmation. The proposal nevertheless underscores the continuing competition to secure semiconductor capacity across Asia.