Chey Tae-won says SK plans AI factory in Japan, eyes semiconductor plant outside Korea

SK Group is building an AI factory in Japan. An AI factory uses power and data as raw inputs to produce "tokens" — the core unit of AI computation — by combining SK's high-bandwidth memory (HBM) with Nvidia's graphics processing units (GPUs) to deliver high computing performance while minimizing power consumption. Nvidia CEO Jensen Huang recently cited AI factories as the blueprint for collaboration with South Korea's industry, and SK plans to launch its first AI factory in South Korea next year.

SK Group Chairman Chey Tae-won said Thursday in an interview with the Nikkei that Japan will be the first location outside South Korea where SK operates an AI factory. SK Group is in talks with Japanese companies with the goal of bringing the Japan AI factory online within two to three years. Chey said he envisions a gigawatt-scale data center — equivalent to the power consumption of a major city — and that the group is scouting candidate sites that can secure large tracts of land and sufficient electricity. He did not disclose a specific investment figure.

Chey also said many industries are currently suffering from a serious semiconductor shortage, and that SK is considering building a semiconductor factory outside South Korea if it expands production capacity further. "Japan is an excellent candidate," he said, noting that the country has the full ecosystem needed for semiconductor manufacturing, including equipment, materials and a favorable power environment.

On the Yongin cluster, which had been targeting completion of four semiconductor factories by 2045, Chey said SK would finish the project "several years or more ahead of schedule." On where to direct profits from semiconductor sales, he said, "Because semiconductor demand is extremely strong right now, we are channeling most of it into factory construction," adding that SK would also pursue the "AI-ification" of its semiconductor plants and continue expanding its engineering workforce.

On profit-sharing — a topic that has gained traction in South Korea — Chey said, "As profits grow, so should our social contributions, and we will continue that not only in Korea but in Japan as well." On Kioxia, the Japanese NAND flash chipmaker in which SK holds a key stake as shareholder and strategic partner, he said, "We are also competitors, and there are constraints on collaboration, but I would like to explore various forms of cooperation in talent, research and development, and the semiconductor ecosystem."

Chey continued on the theme of Korea-Japan economic cooperation that he has consistently championed. On Rapidus, the Japanese chipmaker backed by government investment to revive Japan's semiconductor industry, he said SK is "ready to cooperate at any time, if needed." He added that SK maintains ongoing ties with Japanese semiconductor materials and equipment makers such as Tokyo Electron, and said, "Connecting the Korean and Japanese semiconductor ecosystems plays a major role in the economic security of both countries." He also noted that Japanese partner companies are joining SK in its AI investment activities in the United States, and said SK is "beginning discussions with Japanese companies to generate synergies in new AI-driven businesses."