South Korean chipmaker SK Hynix (SKHY), one of Micron’s (MU) biggest rivals in AI memory, is looking at Japan for another chip plant as the global memory shortage shows little sign of easing. The company is studying a possible joint venture and is reviewing several locations.
SK Group Chairman Chey Tae-won said the search is focused on sites with enough power and water. “We are looking all over Japan,” Chey told Bloomberg News. No location or partner has been selected yet.
Japan already has a well-established chip supply chain that could support SK Hynix’s plans. The company has an indirect stake in Kioxia Holdings (285A), while Japanese companies supply it with chip materials and equipment.
SK Hynix Is Already Spending Billions on AI Memory
The possible Japan plant would add to SK Hynix’s large spending plans in other markets. The company’s board has approved about 54.3 trillion won ($38.3 billion) of investment through 2031.
SK Hynix is also building a more than $4 billion facility in Indiana. The company said the campus and its local supply chain could create about 7,000 direct and indirect jobs once fully built. The plant will focus on advanced HBM packaging and is expected to begin volume production of next-generation HBM4E in the third quarter of 2029.
Notably, HBM is a type of high-speed memory used in AI systems. It works alongside processors from companies such as Nvidia (NVDA).
What It Could Mean for Micron
SK Hynix’s plan could eventually add more memory supply, but it is unlikely to affect Micron in the near term. The Japan project is still being studied, and any new plant would take years to build and start production.
That gives Micron more time to benefit from the current demand for AI memory. SK Hynix held about 58% of the global HBM market by revenue in Q1 2026, according to Counterpoint Research, while Samsung (SSNLF) and Micron each had about 21%.
A new SK Hynix plant could mean more competition for Micron in the future. However, it would take years for a new facility in Japan to begin production, so it should not affect Micron’s current business much.
Is SKHY a Good Stock to Buy Now?
Overall, Wall Street has a Strong Buy consensus rating on SK Hynix stock, based on 10 Buy recommendations issued in the past three months. The average SKHY stock price target of $248.00 indicates 55% upside potential.
