[Exclusive] SK Hynix to build semiconductor factory in Japan

SK하이닉스, a South Korean semiconductor company, is considering building a memory chip manufacturing plant in Miyagi Prefecture, Japan, according to recent reports. This would mark the first time a Korean tech giant invests heavily in a production facility outside of the domestic market, which is currently led by Samsung and Taiwan Semiconductor Manufacturing Company (TSMC).

If the Japanese government continues to push for domestic memory chip investments, the landscape for Korean and Japanese companies could become more complex. Miyagi Prefecture, along with neighboring Shikoku and Hokkaido, is one of three designated areas where the Japanese government is investing to bolster its semiconductor industry.

The scale of investment in Miyagi is estimated to be in the tens of trillions of won, significantly less than the hundreds of trillions of won being poured into domestic Korean and Taiwanese semiconductor clusters. This move by SK하이닉스 is seen as a preemptive strike to expand production capacity in response to the ongoing global memory chip shortage.

If realized, SK하이닉스 would become the third foreign semiconductor producer in Japan, following Micron in the US and TSMC in Taiwan. However, the situation is further complicated by US pressure on Korean companies and the government to increase domestic production of memory chips. This could potentially heighten American demands for local production as well.

The political and public sentiment surrounding foreign investment in South Korea's strategic industry, especially in the semiconductor sector, will need to be carefully managed, along with the inherent political uncertainties in the region.