After Indiana, a second US factory? SK Group signals more American investment ahead

As construction of SK hynix's first advanced packaging fab for AI memory chips in the United States got formally underway, SK Group signaled the possibility of further investment in the country.

Yu Jeong-jun, SK Group's vice chairman overseeing the Americas, said Thursday (local time) at a groundbreaking ceremony for the advanced packaging fab held at Holloway Gymnasium on the Purdue University campus in West Lafayette, Indiana, that SK Group's investment assets in the United States are expected to surpass $45 billion by 2030 and will grow further. "We will contribute to building and strengthening next-generation AI infrastructure in the United States," he said.

"As AI grows, it will require more memory, more powerful computing, and more energy," Yu said. "SK is ready to help build that future across the United States. We have built a strong presence in semiconductors, energy and advanced technology."

SK hynix President Kwak Noh-jung, who took the stage after Yu, said the company would continue to expand its investment and partnerships in the United States. "The journey we begin in Indiana on Friday will lead to a greater future for the US AI industry and for SK hynix," he said.

SK Group Chairman Chey Tae-won had earlier indicated that additional US investment was under consideration. In a CNBC interview on July 10 (local time) marking SK hynix's American depositary receipt listing, he said the company was reviewing further investment beyond the Indiana advanced packaging facility, adding that building a memory production factory was possible if conditions — including power, water, labor and supply chain — were in place.

With the global memory supply shortage showing no signs of easing, SK Group has signaled it is prepared to move aggressively to build additional production facilities to address the shortfall.

Chey's remarks drew attention in part because they came a day after US Commerce Secretary Howard Lutnick, speaking at a concrete-pouring ceremony for US memory chipmaker Micron's Clay fab in New York on July 9, said he wanted to bring Samsung Electronics and SK hynix to the United States to build production facilities.

Lutnick has repeatedly pressed SK hynix and Samsung Electronics to build memory semiconductor factories in the United States. Because the Indiana fab is a back-end packaging facility, his push has been aimed at getting the companies to also establish front-end production facilities on US soil — operations that tend to generate a larger impact on local economies and job creation.

SK hynix has already unveiled a domestic semiconductor investment plan worth 1,100 trillion won ($794 billion) spanning Yongin, Gwangju in South Jeolla Province, and Cheongju. Should the company also move to build additional production facilities in the United States, large-scale investment projects would be running simultaneously in both countries.