SK Group Chairman Chey Tae-won has announced plans to establish an "AI factory," a data center dedicated to artificial intelligence (AI), in Japan. In an interview published in the Nihon Keizai Shimbun on Tuesday, Chey said, "We are in talks with Japanese companies for operation in 2028-2029," emphasizing AI and semiconductor cooperation with Japan. He also called Japan a "sufficiently good candidate" for building a new semiconductor plant, citing that "it is a semiconductor-producing country with all the necessary ecosystem, including power and materials, in place." Chey, who has championed the vision of a "Korea-Japan economic community," is taking the lead in investing in Japan. His remarks also attest to the growing presence of Japan, which is recovering its competitiveness and emerging as a key supply chain hub in the global AI and semiconductor market.
Japan's efforts to rebuild its semiconductor industry resemble an "all-out national campaign." The government's cumulative support poured into Rapidus, the public-private joint foundry company that symbolizes "semiconductor revival," through fiscal year 2027 reaches a total of 2.9 trillion yen (about 27 trillion won). Several years ago, the government also paid 40% of construction costs to attract a plant from Taiwan's TSMC. This stands in contrast to Korea, which provides not a single won in subsidies. While Samsung Electronics and SK hynix share the fruits of the semiconductor boom through "performance bonuses worth N% of operating profit," Japanese NAND flash maker Kioxia announced an investment plan worth 2.1 trillion yen. On top of this, Japan's standing in the manufacturing equipment and materials sectors remains unrivaled. This is why global companies such as TSMC, Micron, and IBM have jumped into building Japan's semiconductor ecosystem.
In terms of advanced semiconductor manufacturing capability, the competitiveness gap between Korea and Japan is wide. But the fact that global companies including SK hynix are keeping a close eye on Japan's semiconductor supply chain is not something to take lightly. The revival of Japan's semiconductor industry represents both a "win-win" cooperation opportunity for K-semiconductors and the rise of a threatening competitor. While seeking synergy effects through strengthened cooperation with Japan, K-semiconductors must not lose their competitive edge. To that end, it is important to strengthen the K-semiconductor ecosystem through deregulation, infrastructure support such as power and water, and expanded tax and financial support. There is also a need to accelerate technological self-reliance in materials, parts, and equipment that currently depend on Japan.
