SK hynix’s Noh-Jung Kwak on additional U.S. investment: “I hope for another good piece of news… we are open to anywhere”

Press conference at the groundbreaking ceremony for the Indiana fab Possible under the premise of the “conditions presented” Takes a cautious stance on KIOXIA stake “Memory boom expected to last until 2030”

사진 확대 Noh-Jung Kwak, CEO of SK hynix, answers questions from reporters at a press conference held after the groundbreaking ceremony for SK hynix’s “Indiana fab” in West Lafayette, Indiana, on the 27th local time. [West Lafayette correspondent Seung Jin Choi]

Noh-Jung Kwak, CEO of SK hynix, who visited the United States to attend the groundbreaking ceremony for the company’s U.S. “Indiana fab,” said he hoped to deliver “another good piece of news for the U.S. artificial intelligence (AI) industry” regarding additional investment in the country.

At a press briefing after the Indiana fab groundbreaking ceremony in West Lafayette, Indiana, on the 27th local time, Kwak was asked about additional investment in the U.S. He replied, “We are open to anywhere, but nothing has been decided yet,” adding that he hoped to share another positive development with the U.S. AI industry.

“We are reviewing opportunities all over the world. We are open to any region or country that gives us opportunities and offers new business possibilities to work with customers,” he said. “If the conditions proposed by the other side are met, I would like to bring another good piece of news to the AI industry in the U.S. or other countries, just like today’s event.”

On the memory semiconductor boom driven by the AI data center frenzy, Kwak said there were “no clear signs pointing to a downturn.” He added that he expects the current situation to continue until the end of 2030.

“Of course, at some point AI may pass its peak, or another downturn may occur in the future,” he said. “But I believe the next downturn will be different from the ones we have experienced over the past several decades.”

He said the reason is that demand in AI-related markets can be predicted. Kwak explained, “In the many downturns we have faced in the past, the memory business was essentially a 100% commodity market, where manufacturers increased output and competed in the same market. But with HBM, customers and chipmakers must work together to develop chips and maximize performance, which makes market demand easier to predict.”

“Therefore, even if a downturn hits the semiconductor market, there will be no sharp decline. At most, demand will gradually weaken or stagnate,” he added.

He also took a cautious stance on the convertible bond (CB) that SK hynix holds in KIOXIA Corporation, a Japanese NAND flash memory maker. If SK hynix converts its current CB holdings into shares, it would become KIOXIA’s largest shareholder.

“We have no specific plan or finalized plan regarding our stake in KIOXIA,” Kwak said. “Just as we want to contribute to the AI industry in the U.S., we also want to contribute to the semiconductor business in Japan.”

“There is still no finalized plan or direction, but we are carefully reviewing how to develop the NAND flash memory business and open up the market,” he added.

On Solidigm’s initial public offering (IPO) plan, Kwak was cautious, saying, “It is still at the discussion stage, and we have not decided to withdraw the IPO.”

He downplayed the significance of the increase in investment for the Indiana fab compared with the original amount. SK hynix announced at the time of its first investment disclosure in 2024 that it would invest about $3.87 billion, but the current investment is expected to exceed $4 billion, or about 5.5 trillion won. “The change in the investment amount is minimal,” Kwak said. “The difference from when the final amount changed is that demand from the market has become much stronger.”

Regarding how to secure workers for the Indiana fab, Kwak said, “We are learning from the cases of two companies that entered here earlier. The most important thing was communication with the local community, and as a result, they were able to gain support from the community, including universities.”

“Our team has already worked with local educational institutions for a long time, so I believe we can secure enough personnel within a few years based on that cooperation,” he said.

Referring to the experience gained from SK On’s factory construction in Kentucky, a subsidiary of SK Group, Kwak said, “When starting a business outside Korea, I learned that understanding the local culture, laws, practices, and business environment is critically important. We are seriously reviewing and preparing every aspect for a successful business.”

[West Lafayette=Seung Jin Choi, correspondent]

This article has been translated by GripLabs Mingo AI.