South Korean company SK Hynix plans to build a factory in Japan. The manufacturer is considering the establishment of a memory chip production facility. This was reported by the South Korean publication Hankyoreh. This will be the company's first major manufacturing investment in the country. SK Hynix's shares rose by one and a half percent amid the news. The quotes reached 1,717,000 Korean won. The basic KOSPI index, meanwhile, fell by 0.67 percent.
The memory chip manufacturer is considering Miyagi Prefecture for the location of the factory. This region is located in the northeast of Japan. The investment volume is being discussed in the tens of trillions of won. An industry source confirmed the visit of the chairman of the SK Group. Chey Tae-won recently visited this Japanese region. The planned factory will expand the company's overseas manufacturing capabilities. SK Hynix continues to invest in the domestic Yeongin-Honam cluster. The Japanese project will be a preventive step amid the chip shortage.
The factory in Miyagi will make the company the third foreign manufacturer. Previously, American Micron and Taiwanese TSMC opened facilities in Japan. Competitor Samsung Electronics has only a research center in Yokohama. This division is engaged in packaging next-generation semiconductors. The investments will strengthen SK Hynix's ties with the Japanese ecosystem. The local government is striving to restore the national semiconductor industry. Miyagi Prefecture is developing as a specialized center alongside Kyushu and Hokkaido.
This decision could complicate SK Hynix's future investment planning. The company must consider various external factors when selecting sites for future production expansion. Markets and stakeholders may hold differing expectations regarding where capacity should be increased. As the semiconductor industry is traditionally viewed as a strategically important sector, such projects can attract heightened attention.