SK hynix is reportedly considering building front-end memory fabs in the United States and Japan, with talks involving Intel and pressure from the U.S. government to expand domestic production also reported. Specific investment locations remain undecided, while the need for front-end facilities is emerging.
Several reports say that SK hynix is considering building a front-end memory fab in the United States. Options cited include talks with Intel, leasing part of Intel's Ohio plant, and forming a joint venture with a major U.S. cloud service provider. The company, however, says that no decision has been made.
The U.S. government is promoting the expansion of semiconductor production domestically and is reportedly calling for front-end capacity to be developed in the country. SK hynix is investing approximately $4 billion to build a back-end facility in Indiana, with mass production scheduled to begin in the second half of 2029, while it is also said to be interested in establishing front-end capacity in the United States.
The South Korean government is considering subjecting transfers of advanced technologies overseas to review and is taking a cautious approach to overseas expansion from the perspectives of preventing the leakage of national core technologies and meeting demand. In addition to regulatory review, overseas front-end expansion is also seen as offering the benefit of avoiding tariffs.
Building a plant in Japan has also emerged as an option. Given that a special-purpose company backed by SK hynix is the largest shareholder of Kioxia Holdings, the possibility of joint production or building a plant in Japan has been suggested.