Chey Tae-won: "Location of Next Semiconductor Plant to Be Decided After Comprehensive Consideration"

SK Group Chairman Chey Tae-won said on Tuesday, June 9, that the surge in semiconductor demand has accelerated planning for the next phase after the construction of SK hynix's Yongin Cluster semiconductor plant, adding that the company is considering various locations while keeping options open for both domestic regions and overseas sites.

Speaking to reporters after attending a panel discussion at the Nikkei Forum's "Korea-Japan Special Session" held at the Imperial Hotel Tokyo, Chairman Chey responded to a question about the location of the next plant after the completion of the fourth semiconductor plant at the Yongin Cluster, saying, "As semiconductor demand continues to increase, we cannot avoid expanding somewhere, and preparing for this is now a task before us."

Regarding the possibility of SK hynix building a plant abroad, he said, "If it is not possible in Korea, shouldn't we build it overseas?" He added, "It may not be a matter of 'we will absolutely build only in Korea.' The market could react in a completely different way afterward."

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

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

This comes amid observations that efforts are being made to have the semiconductor industry play a role in balanced regional development, as President Lee Jae-myung recently announced in a press conference marking his first year in office that he would soon unveil a large-scale investment project to achieve 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 areas.

Chairman Chey also hinted at a multi-faceted review regarding the location of the semiconductor plant, saying, "If customers or other countries believe they will provide us with significant benefits, we can also make demands. How we respond to those demands and move is also a matter of our capability. There is also a need to ensure the minimum satisfaction of 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, Chairman Chey said, "I believe the scope of 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 cooperation."

Regarding demands for the distribution of excess semiconductor profits, he also noted, "Our management goal is to 'make stakeholders happy.' Stakeholders naturally include shareholders, our employees, business partners, and in a broader sense, the entire nation."

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

However, he added, "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 the distribution of excess profits.

Chairman Chey, who has emphasized the importance of economic cooperation between South Korea and Japan, proposed the creation of a "big tent" to bring together cooperation agendas during a panel discussion at the Nikkei Forum the previous day, stating that if the two countries actively join hands in sectors such as semiconductors, AI, and energy, they can leap forward as "rule makers" in the new international order.

He mentioned that South Korean business circles, including SK Group, are making or seeking investments in Japan through Japanese investment funds, and that Japan is also investing in South 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.