TOKYO — Chey Tae-won, the Chairman of South Korea’s SK Group, has unveiled an ambitious vision to deeply integrate the semiconductor ecosystems of South Korea and Japan. In a recent interview with the Nihon Keizai Shimbun (Nikkei), Chey revealed plans to expand SK's cutting-edge artificial intelligence (AI) infrastructure into Japan and tapped the country as a "highly qualified candidate" for potential new memory semiconductor fabrication plants.
The announcement came on the heels of the Nikkei Forum’s "Korea-Japan Special Session" held at the Imperial Hotel in Tokyo. During the forum, Chey, who also serves as the Chairman of the Chey Institute for Advanced Studies, joined influential Japanese business leaders—including Masahiko Kato, President of Mizuho Bank, and Masakazu Tokura, Senior Advisor to Sumitomo Chemical—to discuss bilateral economic solidarity aimed at tackling pressing regional challenges such as energy security, AI technological dominance, and demographic decline.
Japan Expansion: The Next Frontier for 'AI Factories'
A centerpiece of SK Group’s new global strategy is the deployment of "AI Factories"—next-generation data centers specialized in producing "tokens," the fundamental units of AI processing. SK Group is currently working in close partnership with U.S. AI giant Nvidia to launch its first AI Factory in South Korea by next year.
According to Chey, SK intends to replicate this model in Japan, targeting an operational launch between 2028 and 2029. This would mark the first time SK builds such a facility outside its home country.
"We are currently in active discussions with several Japanese corporate partners to establish an AI Factory within the next two to three years," Chey told the Nikkei.
While the exact investment figures remain undisclosed, Chey noted that the proposed Japanese facility would be a massive, gigawatt-grid (GW) scale infrastructure capable of consuming power equivalent to that of a major metropolitan city. SK is currently conducting site surveys in Japan to secure the vast tracts of land and the robust power supply required for such an endeavor.
Connecting the Semiconductor Supply Chain
Beyond data infrastructure, Chey signaled that SK is seriously considering Japan for future physical semiconductor manufacturing facilities as global chip shortages loom across various tech sectors.
"Japan is an excellent candidate for a new semiconductor factory," Chey emphasized, praising the country’s comprehensive ecosystem, which boasts world-class semiconductor manufacturing equipment, advanced materials, and a stable power grid.
This cooperative stance extends to local Japanese chipmakers. Regarding Kioxia, the Japanese NAND flash memory manufacturer in which SK is a major stakeholder, Chey acknowledged the delicate balance between rivalry and partnership. "While we are competitors and face certain regulatory constraints regarding direct collaboration, we remain highly eager to cooperate on talent development, R&D, and the broader chip ecosystem," he said. Furthermore, Chey expressed an open-door policy toward Rapidus, a government-backed Japanese venture aiming to mass-produce 2-nanometer chips, stating that SK is "ready to cooperate whenever necessary."
The integration also benefits SK’s existing operations. Chey noted that SK maintains an ongoing, seamless alliance with premier Japanese equipment and material suppliers, such as Tokyo Electron. "Connecting the semiconductor ecosystems of Korea and Japan is not merely a corporate alliance; it plays a pivotal role in the economic security of both nations," Chey added.
Accelerating Domestic Commitments and Social Responsibility
While looking outward to Japan, SK Group is simultaneously accelerating its domestic investments. Chey revealed plans to fast-track the construction of the Yongin Semiconductor Cluster in South Korea. Initially scheduled to complete four manufacturing lines by 2045, Chey stated that SK intends to pull forward the completion date "by several years."
Addressing how SK plans to utilize its soaring profits from the current AI-driven semiconductor boom, Chey explained that the majority of earnings are being aggressively reinvested into physical factory construction, internal AI automation of manufacturing processes, and the recruitment of top-tier engineering talent.
Chey also touched upon the socially sensitive issue of excess profit distribution, an ongoing topic of debate in South Korea. He pledged that a rise in corporate profits would naturally translate into increased social contributions, a philosophy he intends to uphold in both South Korea and Japan.
As geopolitical tensions and supply chain vulnerabilities reshape the global tech landscape, the proposed synergy between South Korea's memory semiconductor prowess and Japan's dominance in chip materials and equipment could mark a turning point in East Asian economic history. Chey concluded by noting that SK is already engaging Japanese partners in its ongoing AI investment activities in the United States, cementing a trilateral front in the global race for AI supremacy.
[Copyright (c) Global Economic Times. All Rights Reserved.]
