South Korea’s two semiconductor giants, Samsung Electronics and SK Hynix, are simultaneously accelerating their production footprint in the United States, with a level of urgency that clearly outpaces their investments in South Korea’s domestic Honam regional semiconductor cluster. Industry analysts note that mounting pressure from the U.S. federal government to build domestic production capacity, combined with the strategic imperative of capturing AI chip demand from Big Tech customers, are the core factors driving both companies to prioritize their U.S. investments above all else.
The U.S. federal government has recently been exerting pressure on South Korean semiconductor companies through both formal and informal channels, demanding expanded production facilities on American soil. U.S. Commerce Secretary Howard Lutnick publicly called out Samsung Electronics and SK Hynix by name during an appearance at a Micron production facility event in July, urging both companies to build memory wafer fabs in the United States. The pressure from Washington intensified further after the two companies announced large-scale investment plans for the Honam semiconductor cluster in South Korea.
Beyond responding to trade pressure, proximity to major U.S. technology customers is another critical consideration. Establishing production bases in the United States allows both companies to be geographically closer to their key Big Tech clients, facilitating transactions, joint R&D, talent exchanges, and other forms of close collaboration. Furthermore, being first to supply high-value-added technologies such as customized high-bandwidth memory (HBM) from onshore facilities is viewed as a crucial strategy for staying ahead of Chinese competitors including CXMT and YMTC.
SK Hynix held a groundbreaking ceremony last Thursday (local time) in West Lafayette, Indiana, for its advanced packaging production site. The company plans to invest more than $3.87 billion (approximately NT$120 billion) to build a production base that includes an advanced packaging facility and an AI memory R&D center. The Indiana plant is scheduled for completion by the end of 2028 and will mass-produce AI memory products, including next-generation HBM. The company also plans to leverage the semiconductor research infrastructure and talent pool at nearby Purdue University to strengthen technology development synergies.
When asked whether the company plans to expand its investment footprint in the United States, SK Hynix CEO Kwak Noh-Jung said at a press conference following the groundbreaking ceremony: “SK Hynix will evaluate opportunities anywhere in the world as long as conditions are met.” He added: “I hope to deliver good news like today’s in the United States or other countries as well.” The remarks signal that, following the back-end packaging process, the company remains open to the possibility of building front-end memory production facilities in the United States.
Samsung Electronics, for its part, has invested more than $37 billion (approximately NT$1.2 trillion) in Taylor, Texas, to build a foundry cluster. The first Taylor fab, which serves as the core site, is undergoing final preparations with the goal of commencing operations within this year. The second fab is expected to break ground by the end of this year, targeting mass production by 2030. The company is simultaneously pushing forward with the expansion of its 1.4-nanometer (nm) process technology to maintain its technological leadership and rapidly absorb AI chip demand from Big Tech customers.
In contrast to the rapid progress of U.S. investments, South Korea’s domestic Honam regional semiconductor cluster—a project valued at approximately ₩800 trillion (roughly NT$18.5 trillion)—continues to face practical challenges and uncertainties in infrastructure, including power supply, water resources, and site development. Industry insiders point out that for companies urgently needing to secure customers and defuse trade pressure, prioritizing U.S. site construction is an unavoidable choice.
Against this backdrop, South Korean President Lee Jae-myung has recently held a series of private dinners with Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won. According to sources, the discussions covered infrastructure support measures for the Honam cluster’s power and water resources, as well as strategies for responding to the intensifying U.S. pressure on semiconductor investment.