[On Site] Nojung Kwak: "Semiconductor Boom Will Continue"...Open to Additional Investments Anywhere

Demand Surge Driven by AI Expected to Continue Until 2030
Open to Additional Investments: "All Regions Are on the Table"
Considering Investments in U.S. AI Startups and Tech Companies
Reasons for Choosing Indiana: Government Support, Electr

Nojung Kwak, President of SK hynix, predicted that the strong demand for memory semiconductors, driven by the spread of artificial intelligence (AI), will continue for the foreseeable future. He also stated that SK hynix could consider additional investments in the United States if business conditions such as electricity, water supply, and incentives are met, regardless of the region.

Nojung Kwak, President of SK hynix. SK hynix

On the 27th (local time), during a press conference following the groundbreaking ceremony for SK hynix's next-generation high bandwidth memory (HBM) advanced packaging plant in West Lafayette, Indiana, President Kwak was asked how long he expected the memory supply shortage to last. He commented, "So far, there are no clear signs of a downturn," and projected that the favorable market environment led by AI would persist until 2030.

He further assessed that even if there is a future downturn in the memory market, it is unlikely to be as severe as the sharp decline experienced in the past. President Kwak said, "The next downturn will be different from those we have seen over the past few decades," adding, "Even if a downturn does occur, instead of a sharp drop in demand, it is more likely that the rate of increase will slow or demand will plateau."

He explained that whereas the memory market used to be centered on standard products—making it difficult to accurately predict market demand and adjust production volumes—the AI era is shifting the business structure toward customized products, with HBM at the core.

He also remarked, "It takes more time to maximize the performance of chips within customers’ systems," emphasizing the importance of suppliers and customers developing next-generation products together and maximizing their performance.

Open to Further U.S. Investment ... Favorable Conditions Such as Subsidies and Power Supply Considered

Hyunjoong Kim, Head of the SK hynix Indiana Fab Project Construction Team, and employees are touring the SK hynix Advanced Packaging production site in West Lafayette, Indiana, USA. Indiana, USA – Photo by Yoonju Hwang

SK hynix is open to the possibility of making additional investments in the United States. When asked whether SK hynix was reviewing additional projects in light of U.S. tariff policies, President Kwak clarified that while nothing has been finalized yet, "If favorable conditions such as electricity, water supply, and subsidies are provided, and if new business opportunities with customers can be created, we are open to any location."

As the U.S. government aggressively encourages investment in domestic advanced semiconductor manufacturing facilities, SK hynix expressed a similar position regarding the potential for further front-end manufacturing facilities in the United States.

President Kwak said, "Any region or country that allows us to create new business opportunities with our customers is open to us," explaining that the business environment and government support would be comprehensively considered.

However, he drew a clear line, stating that no specific decisions had been made regarding additional investment or the construction of front-end plants in the United States. He also indicated that a potential U.S. IPO for SK hynix’s subsidiary Solidigm has not yet been finalized, and that reviews are ongoing.

SK hynix also plans to increase its investment in the local AI ecosystem in the United States. Regarding the AI-related corporation established in the U.S. this year, President Kwak explained it is "a type of investment vehicle to invest in important startups and companies as we prepare for future business." The investment targets are AI startups and technology companies that can generate synergy with SK hynix’s memory business.

Indiana Chosen for Land, Power, Water, and Government Support

SK hynix Groundbreaking Ceremony. SK hynix.

President Kwak cited infrastructure such as land, electricity, water, and government support as key reasons for choosing Indiana as SK hynix’s first production base in the U.S. He said, "When we were selecting the site about three years ago, we considered all factors including land, electricity, water, and support from local and federal governments." He added, "Indiana was exceptionally strong compared to other candidate regions when we evaluated the options."

Sourcing local talent was also identified as a core priority. President Kwak noted that they are learning from the experiences of other Korean and Taiwanese firms that have expanded in the U.S., and stressed the importance of communicating with local communities and partnering with universities and educational institutions. He said, "By cooperating with local communities, universities, and educational institutions, we believe we can secure high-quality talent. We will continue to learn from the experiences of other companies."

 

Regarding SK hynix’s relative lack of experience in directly building and operating large production facilities in the United States, President Kwak said it is crucial to understand U.S. culture, laws, and business practices.

He added that SK Group affiliates are benchmarking their accumulated experience from operating U.S. plants and from other companies’ cases, emphasizing, "When starting a business outside Korea, understanding the culture, law, practice, and business operations is extremely important."

This content was produced with the assistance of AI translation services.