In April, SK Hynix introduced its bold plan to take a position $3.87 billion in its first U.S. semiconductor plant positioned in West Lafayette, Indiana. The ability is about to concentrate on superior packaging manufacturing for AI reminiscence, with the purpose of beginning mass manufacturing of next-generation high-bandwidth reminiscence (HBM) and different AI reminiscence merchandise by the second half of 2028.
Nevertheless, current developments have forged uncertainty over this important funding. Final weekend, Chey Tae-won, Chairman of SK Group, expressed considerations at a press convention through the Korea Chamber of Commerce and Business’s Jeju Discussion board. He indicated that the corporate would possibly rethink its funding course in america if the U.S. authorities alters its semiconductor subsidy coverage. “Nothing is completely decided yet, and if subsidies are not provided, we will have to completely rethink the issue,” Chey acknowledged.
On July 23, business sources reported Chey’s feedback from the Jeju Discussion board, emphasizing his apprehensions in regards to the potential influence of the upcoming U.S. presidential election on semiconductor subsidies. Regardless of these considerations, Chey famous that the AI market doesn’t appear to pose a big threat for SK Group and described their funding in U.S. semiconductors as comparatively small.
The backdrop to this case contains important investments by different main gamers within the semiconductor business. Samsung Electronics, as an example, is investing a staggering $44 billion in U.S. semiconductor vegetation and a sophisticated packaging R&D heart. The corporate is receiving $6.4 billion in subsidies from the U.S. authorities, a better share in comparison with Intel and TSMC. Samsung plans to start out mass manufacturing of 4-nanometer foundry processes at its Taylor Plant 1 in 2026, with Plant 2 scheduled for completion in 2027.
Chey Tae-won’s remarks have sparked discussions about the way forward for SK Hynix’s funding within the U.S. The corporate has already submitted an software for semiconductor subsidies to the U.S. authorities. “Reconsidering U.S. Investment Without Subsidies,” Chey emphasised, highlighting the crucial position of presidency assist of their decision-making course of.
An business insider commented on the state of affairs, stating, “In the case of Samsung Electronics, significant progress has already been made in the construction of the Texas plant, and it is closely linked to the local economy, so it will not be easy to shake the foundation of the subsidy policy even if the U.S. president changes.”