Interest is growing in the overseas expansion strategies of Samsung Electronics and SK Hynix as major countries like the U.S. and Japan offer different incentives to attract global semiconductor companies. The focus is on the direction of K-semiconductor leaders' overseas production bases.
According to reports on September 6, U.S. President Donald Trump has been consistently promising low tax rates and subsidies for companies that build factories in the U.S., which is accelerating Samsung's plans for its Taylor 2 plant in Texas.
Samsung aims to break ground on the Taylor 2 plant by the end of the year, expanding its connections with major local tech clients like Nvidia and Tesla while seeking up to $4.75 billion in direct subsidies. With high tariff barriers becoming a reality, securing local production lines has emerged as a key strategy for trade compliance.
SK Hynix is also expanding its footprint in the U.S., recently starting construction on a next-generation high-bandwidth memory (HBM) packaging plant in Indiana with an investment of $3.87 billion. The U.S. government has pledged up to $458 million in direct subsidies and $500 million in loan support.
SK Hynix is exploring Japan as a potential partner for investment, keeping options open. SK Group Chairman Chey Tae-won recently remarked, "Any place with good power and water is favorable," indicating a focus on efficient infrastructure.
The Japanese government is rapidly implementing substantial cash subsidies, covering up to 50% of the investment for local factories established by global semiconductor firms like TSMC and Micron. It quickly approved a total of 1.208 trillion yen (approximately $10.3 billion) in subsidies for TSMC's Kumamoto plants and is providing up to 500 billion yen (about $4.27 billion) for Micron's DRAM plant expansion in Hiroshima.
Japan's advanced semiconductor ecosystem, including companies like Tokyo Electron, along with abundant industrial water and power networks, makes it an attractive location for HBM and next-generation semiconductor infrastructure.
However, both Samsung and SK Hynix are carefully navigating their overseas production expansion strategies. The differing environments of high U.S. tariffs and Japan's strong cash support present challenges, making it crucial to balance domestic policy and significant investment risks.
The South Korean government is actively promoting the establishment of large semiconductor clusters in areas like Yongin and the southwestern region, making it essential to find a balance in investment distribution between domestic and international sites.
An industry insider noted, "Expanding overseas fabs is a complex decision that involves not just the scale of subsidy support but also trade risks and the costs of operational infrastructure like industrial water and power. Samsung and SK Hynix are likely to pursue a 'two-track strategy,' focusing core advanced process production capabilities in domestic clusters while differentiating overseas bases in the U.S. and Japan for trade compliance and local customer needs."
* This article has been translated by AI.
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