South Korea's ruling party is moving to ease capital-raising restrictions that currently block SK Hynix from forming joint ventures with outside investors to build semiconductor factories. The change would let SK Hynix attract external funding while retaining majority control, supporting the government's push to establish South Korea as an AI manufacturing hub and enabling chipmakers to finance the aggressive fab expansion lawmakers say traditional capital-raising cannot cover.
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South Korea's ruling Democratic Party of Korea has proposed amending a law to allow SK Hynix — currently a subsidiary of a subsidiary — to set up ventures with outside investors to build chip factories, provided SK Hynix retains at least a 50% stake. The move follows government efforts to position South Korea as an AI powerhouse.
Why it matters
SK Hynix, the leading developer of high-bandwidth memory for Nvidia's AI processors, raised $26.5 billion（約4.2兆円） in a recent U.S. share sale but is expected to need far more capital for aggressive chip expansion. The law change would unlock new funding pathways as traditional capital-raising no longer covers the costs lawmakers cite for fab construction.
What to watch
Any new venture under the amendment must locate its headquarters or main office outside the greater Seoul area. SK Hynix and Samsung Electronics have each pledged to invest 400 trillion won ($268 billion（約43兆円）) in new semiconductor production sites in South Korea's southwest.
South Korea's ruling party is moving to unlock fresh capital for semiconductor expansion by removing a structural constraint that has uniquely hampered SK Hynix. While other major South Korean conglomerates control their prized business units through a complex web of cross-shareholdings, SK Hynix sits nested two levels deep in the SK Inc corporate structure — a position that the current law prohibits from forming outside joint ventures. The proposed amendment targets this specific disadvantage, allowing SK Hynix to retain majority control while bringing in external partners.
The timing reflects a broader government strategy. South Korea has outlined plans for new semiconductor production sites in the southwest, with SK Hynix and Samsung Electronics each committing 400 trillion won ($268 billion（約43兆円）) in investment. Lawmakers explicitly frame this move as necessary for speed: "fast construction of fabs to win against other major countries and companies." SK Hynix's position as the leading developer of high-bandwidth memory for Nvidia's AI processors makes it a centerpiece of that ambition. The company's recent $26.5 billion（約4.2兆円） U.S. share sale, while substantial, is positioned as insufficient for the scale of planned expansion — signaling that the government views the capital-raising bottleneck as a genuine constraint on South Korea's ability to compete in the AI chip race.
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