SK chief unveils plan for 'AI factory' in Japan in first for group

Chairman Chey Tae-won said SK plans to build an AI data center in Japan as the group weighs broader chip production expansion abroad.

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Chey Tae-won and Jensen Huang stand at microphones during a joint SK-Nvidia briefing in Seoul.
SK Group Chairman Chey Tae-won, on the left and Nvidia CEO Jensen Huang attend a press event at SK Seorin building in Jongno District, central Seoul, on June 8.

SK Group Chairman Chey Tae-won unveiled plans to build an AI data center in Japan with tech giant Nvidia.  This is the first time SK Group has specified plans to construct an AI data center overseas. 

SK is reportedly in talks with a Japanese company to operate an “AI factory” by 2028 or 2029. The group is also considering building a semiconductor factory overseas and is reviewing Japan as a viable option.

The chairman announced plans to start SK’s first AI factory in Korea sometime next year in collaboration with Nvidia, along with an expansion to Japan, according to the Japanese outlet Nikkei on Thursday.

The facility would combine SK hynix's advanced memory chips, including high bandwidth memory, with Nvidia GPUs to process massive amounts of data efficiently with reduced power consumption.

The planned Japanese AI factory would have a power capacity measured in gigawatts, Chey said, noting that SK is currently searching for a large site in Japan capable of securing a sufficient power supply for the project.

Chey did not disclose the planned investment amount.

The plan comes amid a "quite serious" semiconductor shortage driven by surging AI demand and calls for expansion of memory production capabilities, according to Chey.

Even though SK hynix is already building what is expected to become the world's largest semiconductor production complex in Yongin, Gyeonggi, the company is also considering constructing semiconductor manufacturing facilities overseas to secure additional production capacity.

SK Group Chairman Chey Tae-won speaking at a Nikkei Forum panel in Tokyo with a microphone and water glass on the table.
SK Group Chairman Chey Tae-won speaks in a forum about Korea-Japan economic cooperation at the Imperial Hotel in Tokyo on June 9.


"Japan has the entire ecosystem we need, including semiconductor equipment manufacturers and materials suppliers," Chey said, calling the country "a very strong candidate."

He added, however, that deciding “when and where to build [a semiconductor manufacturing facility] in Japan remains difficult.”

Chey also said SK hynix plans to accelerate construction of its Yongin semiconductor complex. The company originally aimed to bring four fabs online sequentially by 2045 but is now looking to move up completion by several years to increase production capacity.

SK hynix's Cheongju plant in North Chungcheong





The chairman also reiterated his vision of a Korea-Japan economic community integrating the two countries into a single market.

Closer cooperation between Korea and Japan may allow the two countries to grow despite global uncertainty, he added.


BY KIM KYUNG-MI [[email protected]]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.