SK Square and Hynix Invest in US and Japanese Semiconductor Materials and Components Companies

Establishment of TGC Square with 100 Billion Investment
"Expansion of Scope Since First Investment in Japan"

SK Square and SK Hynix are set to invest in overseas semiconductor materials, parts, and equipment (MPE) companies.

On the 4th, SK Square and SK Hynix announced that they will invest approximately 100 billion KRW in overseas semiconductor MPE companies in the US, Japan, and other countries, together with major domestic financial institutions. The plan is to make early investments in MPE companies with advanced technology to establish a stable supply chain and strengthen cutting-edge technological competitiveness.

SK Square has established an investment corporation called TGC Square. SK Hynix, Shinhan Financial Group, and LIG Nex1 are participating in the investment. They determined that collaborating with MPE companies possessing overwhelming technological capabilities in design, production, and packaging processes is essential to strengthen the semiconductor value chain. TGC Square also plans to operate a 'Semiconductor Advisory Committee' to provide technological insights from semiconductor industry experts.

Choi Woo-sung, Managing Director (MD) of semiconductor investments at SK Square and CEO of SK Telecom Japan, will serve as the CEO of the investment corporation. Jo Hee-jun, former head of sales at BNP Paribas Japan, has been appointed as Chief Investment Officer (CIO), and Miyamoto Yasuteru, former Vice President at Credit Suisse, has been recruited as a professional evaluator.

Images related to SK Hynix semiconductor production site.
Photo by SK Hynix

TGC Square plans to actively utilize overseas investment bases operated by SK ICT affiliates. From deal sourcing and technology verification stages, they will identify high-tech overseas companies early and consider joint investments to maximize synergy. Investment corporations such as SK Telecom Japan (Tokyo, Japan), SK Hynix Ventures (San Jose, USA), SK Square America (New York, USA), and SK Telecom America (Santa Clara, USA) will also be leveraged.

The first investment targets under review are promising Japanese semiconductor companies. Approximately 60% of the investment funds will be allocated to Japanese MPE companies. Technology verification will focus on potential investment targets such as ▲ semiconductor inspection equipment developer Company A ▲ eco-friendly semiconductor parts manufacturer Company B ▲ AI semiconductor developer Company C ▲ next-generation semiconductor materials developer Company D.

SK Square and SK Hynix plan to implement various strategies to increase corporate value even after this investment. They are considering expanding business and technological cooperation by utilizing SK Hynix’s network and supporting mergers and acquisitions (M&A) and initial public offerings (IPO).

In addition to Japan, they plan to actively discover and invest in overseas semiconductor MPE companies in the US and other countries. This overseas investment will be conducted separately from ongoing domestic semiconductor investments.

Choi Woo-sung, CEO of TGC Square, said, "This is a meaningful project where major SK affiliates and leading domestic financial institutions jointly invest overseas to expand the semiconductor industry ecosystem both domestically and internationally. It will serve as an opportunity to strengthen the foundation of future semiconductor technologies by increasing cooperation with globally renowned MPE companies."

This content was produced with the assistance of AI translation services.