SK Group’s SK hynix considers US locations for memory fab expansion, emphasising the importance of a comprehensive semiconductor ecosystem to tackle ongoing supply shortages and meet surging AI demand.
SK Group chairman Chey Tae-won said the company is examining potential sites for memory chip manufacturing in the US and other regions, but that finding the right location remains difficult because the decision depends on far more than land alone. In comments carried by CNBC and reported by eToday, Chey said power, water and available sites are only part of the equation; a viable location also needs a wider semiconductor ecosystem of materials, components and service companies.
Chey said large memory fabs rely on a network of roughly 600 to 700 suppliers, making it hard to move production without supporting infrastructure. Industry reports this year have already indicated that SK hynix expects any new greenfield fab to take more than five years to come online, which would fit the company’s view that the current supply shortage is likely to persist well into the decade.
That assessment underpins SK hynix’s decision to expand aggressively. Reuters reported in June that Chey said the company plans to double total wafer capacity over the next five years, with 2026 investment expected to exceed the 30.2 trillion won spent in 2025. He has also said the memory market tightness may last until 2030, as artificial intelligence continues to drive demand for high-bandwidth memory, or HBM, which is used in advanced AI systems.
Chey warned that tight supply could feed into broader price pressure if memory costs stay elevated. He argued that higher chip prices can force companies such as Apple to raise product prices, adding to inflation. To reduce execution risk, SK hynix is considering more long-term supply contracts and business models that share investment burdens with customers. Chey also said the industry is moving away from generic memory products towards customer-specific designs, citing HBM4E and the next-generation HBM5 as examples of a more customised era for memory chips. According to reports from this year, SK hynix wants to remain a major supplier for Nvidia’s Vera Rubin platform while also serving other large cloud and AI customers seeking tailored memory solutions.
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