SK Square, SK hynix to invest in semiconductor startups in US, Japan

SK hynix Icheon plant in Gyeonggi Province / Courtesy of SK hynix

By Kim Hyun-bin

SK Square and SK hynix are seeking to invest in semiconductor materials, components and equipment in the U.S. and Japan, according to SK officials, Tuesday.

The two affiliates announced plans to invest approximately 100 billion Korean won ($76.8 million) in U.S. and Japanese overseas semiconductor material and component companies, along with major domestic financial firms.

They will invest in companies with strong technological capabilities in the semiconductor material and component sector, in order to establish a stable supply chain and enhance advanced technological competitiveness.

SK Square has established an investment firm called TGC Square, with participation from SK hynix, Shinhan Financial Group and LIG Nex1, among others. They aim to collaborate with technologically advanced small and medium-sized companies in the semiconductor value chain, specializing in design, production and packaging processes. TGC Square also plans to operate a semiconductor advisory committee to provide insights from semiconductor industry experts.

"This joint investment project with major SK affiliates and leading domestic financial firms hold significant meaning in expanding the domestic and international semiconductor industry ecosystem. It will strengthen collaboration with globally renowned small and medium-sized companies in the semiconductor material and component sector, laying the foundation for future semiconductor technology," an SK TGC Square official said

SK Square and SK hynix are initially considering Japanese semiconductor small and medium-sized enterprises as investment targets. Approximately 60 percent of the investment funds will be allocated to Japanese semiconductor material and component companies. Prospective investment targets include a semiconductor inspection equipment developer, an environmentally friendly semiconductor component manufacturer, an AI semiconductor developer, as well as a next-generation semiconductor material developer.

Following this investment, SK Square and SK hynix plan to execute various strategies to enhance corporate value. They are considering expanding business and technological collaborations, utilizing SK hynix's existing network, as well as supporting mergers and acquisitions (M&A) and initial public offerings.