US, Japan emerge as Korean chipmakers' production bases amid AI boom

The United States and Japan are poised to become the next key production locations for major chipmakers Samsung Electronics and SK hynix, as they expand capacity to meet soaring demand for artificial intelligence (AI) semiconductors. Both nations present attractive advantages, with the U.S. offering proximity to major customers such as Nvidia and Tesla, along with incentives that could offset investment costs and potentially reduce exposure to semiconductor tariffs from the Trump administration.

Conversely, Japan boasts a well-established ecosystem of chip equipment and materials suppliers, dependable power and water supplies in certain regions, and substantial government subsidies for semiconductor investments.

For chipmakers, the selection of location transcends mere customer accessibility. Reliable electricity and water supplies, coupled with government incentives, have become increasingly crucial as companies commit billions of dollars to new fabrication facilities. An industry official remarked, "Companies scrutinize incentives, including infrastructure and subsidies. They must first evaluate whether water and electricity meet their requirements."