SK Group Chairman Choi Tae-won stated on May 10 (local time) that building a memory semiconductor factory in the United States is possible if necessary conditions such as power, clean water, land, skilled labor, and supply chain ecosystem are met. The statement came during a CNBC studio interview at the Nasdaq Stock Market, in response to questions about the Trump administration requesting additional US investment. Choi emphasized that SK Hynix's team is reviewing suitable locations worldwide, including the US, and would invest if an appropriate site is found. The remarks followed SK Hynix's American Depositary Receipt (ADR) listing on Nasdaq earlier that day, marking what Choi called a "historic moment" 15 years after SK acquired Hynix.
SK Group Reviews US Memory Fab Investment Conditions
Choi told CNBC that constructing a memory fab requires power, clean water, sufficient land, skilled labor, and a supply chain ecosystem. "Our team is currently reviewing suitable locations not only in the US but around the world. If we find an appropriate site in the US, why wouldn't we invest there?" he said. The only ongoing US investment project is a $4 billion AI memory advanced packaging plant under construction in West Lafayette, Indiana.
Choi Announces Billions in Planned AI Investments
Separate from memory fab considerations, Choi disclosed plans for aggressive AI-sector investments. "Apart from memory, we expect at least billions of dollars in AI investments," he stated. "We are reviewing various forms of AI business including AI data centers, AI technology, startups, and joint ventures with partners." Choi added that such large-scale investments are expected "soon, or at least in the not-too-distant future."
SK Hynix Nasdaq Listing Expands Global Capital Access
Reflecting on the Nasdaq listing, Choi described it as a "truly historic moment" that the company had awaited for a long time. "It has been 15 years since SK acquired Hynix. Back then it was a dream, but now that dream has become reality," he said. Choi thanked SK Hynix employees, customers, shareholders, partners, and supporters, stating the milestone would have been impossible without them. He emphasized the listing provides direct access to global capital markets and expands financial options. "When recruiting US or global talent, stock options based solely on Korean shares were not sufficiently attractive. Now we can utilize various forms of stock options and compensation systems," Choi explained. He added that the company must establish a new governance system befitting its new US and global shareholder base.
HBM Production Doubled Still Insufficient for AI Demand
Choi expressed strong confidence in memory industry growth driven by AI. "In the past, memory demand was determined by the number of people or hardware devices, but the AI era is different," he said. "Now AI agents, physical AI, and robots have emerged, and AI is not limited by the number of people or hardware. Memory demand is increasing exponentially." He noted meeting numerous customers and partners who all want more memory. "We announced plans to double production capacity within five years, but customers say 'that's still not enough. We need more.' Even doubling capacity is insufficient in today's AI market," Choi stated. Addressing reports that Google and Nvidia are designing products to reduce HBM usage for cost savings, Choi said he sees no signs of declining HBM demand. "All customers are asking us to increase this year's production and next year's production. They are requesting more supply not only of HBM but also general DRAM. The biggest problem right now is supply shortage, and demand is truly enormous," he said. Regarding long-term supply contract pricing, Choi explained that some customers prefer market-based pricing while others want fixed prices. "There is no uniform standard. We design long-term contracts according to what each customer wants. The most important principle is a sustainable relationship with customers," he stated.
SK Hynix China Operations Export 70%+ to US Customers
Addressing China operations and US export control policies, Choi clarified potential misunderstandings about the China plant. "More than 70% of products manufactured at the China plant are exported outside China, and most are supplied to US customers. Less than 30% is supplied to the Chinese domestic market, and we strictly comply with US export control policies, so I believe there are no major issues," he stated.
FAQ
What did SK Group Chairman Choi Tae-won say about building a US memory fab on May 10?
Choi stated that constructing a memory fab in the US is possible if necessary conditions such as power, clean water, land, skilled labor, and supply chain ecosystem are met. He said SK Hynix's team is reviewing suitable locations worldwide, including the US, and would invest if an appropriate site is found. The only current US project is a $4 billion AI memory packaging plant in West Lafayette, Indiana.
How much AI investment is SK Group planning according to Choi's May 10 interview?
Choi disclosed plans for "at least billions of dollars" in AI-sector investments. He said the company is reviewing various forms of AI business including AI data centers, AI technology, startups, and joint ventures with partners, with such investments expected soon or in the not-too-distant future.
Why does SK Hynix say doubled HBM production is still insufficient?
Choi explained that all customers are requesting increased production for this year and next year, asking for more HBM and general DRAM supply. He stated that even after announcing plans to double production capacity within five years, customers say it is still not enough, emphasizing that supply shortage is the biggest current problem and demand is enormous.
