Chey Tae-won Says Location for Next Semiconductor Plant Will Be Decided After Comprehensive Consideration

SK Group Chairman Chey Tae-won said on June 9 that the rapid surge in semiconductor demand has accelerated planning for the period after the construction of SK Hynix's Yongin semiconductor cluster, and that the company is considering various locations, leaving open possibilities both domestically and abroad.

Speaking to reporters after attending a discussion at the Nikkei Forum's "Korea-Japan Special Session" at the Imperial Hotel in Tokyo, Chey responded to a question about the location of the next factory after the completion of the fourth phase of the Yongin cluster, saying, "As semiconductor demand continues to grow, we have to expand somewhere, and preparing for this has become our homework."

Regarding the possibility of SK Hynix expanding its factories overseas, he said, "If it doesn't work out in Korea, aren't we in a situation where we have to look overseas?" He added, "It might not be a matter of 'we must build only in Korea.' The market could react completely differently afterward."

He added, "If we are to build a factory somewhere, it requires a massive amount of infrastructure. Power, land, people, and water must all be in place."

Chey's remarks are drawing attention as they coincide with recent reports that political circles and others are considering plans for Samsung Electronics and SK Hynix to expand their semiconductor facility investments into the Honam and Chungcheong regions.

This comes amid speculation that the semiconductor industry is being eyed to play a role in balanced regional development, especially after President Lee Jae-myung recently announced during a press conference marking his first anniversary in office that he would soon unveil a large-scale investment project to bring about a major shift in growth strategy.

However, Samsung Electronics and SK Hynix have drawn a line, stating they "have no knowledge" of any discussions with the government, and that "nothing has been decided" regarding the possibility of investing in regional provinces.

Chey also suggested that a multi-faceted review is underway regarding the location of the semiconductor factories, saying, "If customers or other countries believe they will benefit us greatly, we can also make demands. How we act upon receiving those demands is also a reflection of our capability. There is also a need to ensure at least a minimum level of satisfaction for our stakeholders."

He added, "We will make a decision on where and how to build after comprehensive consideration. For now, we are focusing on building the Yongin cluster."

Regarding cooperation with Nvidia CEO Jensen Huang, who recently visited South Korea, Chey said, "I believe the scope of our cooperation will continue to develop in the future." He added, "Jensen Huang and I agreed on the need for an ecosystem where artificial intelligence (AI) can continue to grow, and that Nvidia's leadership alone is not enough, requiring more collaboration."

He also addressed demands for sharing excess semiconductor profits, noting, "Our management goal is to 'make stakeholders happy.' Stakeholders naturally include shareholders, our members, business partners, and, in a broader sense, the entire nation."

He continued, "The methodology of how to share happiness can differ. Paying a lot of taxes or creating more investments and jobs is also important. If unavoidable rules are established, we need to follow and apply them well."

He mentioned, "If other problems or side effects arise in the future, we must continue to find new ways to resolve those issues socially," sharing his thoughts on introducing new systems such as excess profit sharing.

Chey, who has consistently emphasized the importance of Korea-Japan economic cooperation, proposed during the Nikkei Forum discussion on the previous day that if South Korea and Japan actively join hands in sectors such as semiconductors, AI, and energy, they could leap forward as "rule makers" in the new international order. He suggested forming a "big tent" to bring cooperation agendas together.

He shared that Korean business circles, including SK Group, are making or exploring investments in Japan through Japanese investment funds, while Japan is also investing in Korean companies and ventures. He emphasized, "It is important to have a climate where the market is more integrated and operates as one."

(Photo: Courtesy of SK Group, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.