SK hynix calls for eased regulation on business structure amid AI competition

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SK hynix calls for eased regulation on business structure amid AI competition

The SK hynix logo is seen at the company's headquarters in Icheon, Gyeonggi, on Oct. 29. [YONHAP]

The SK hynix logo is seen at the company's headquarters in Icheon, Gyeonggi, on Oct. 29. [YONHAP]

 
SK hynix on Wednesday called on the government to ease fair trade regulations to help the business launch a special purpose company aimed at raising the cash needed for its major investment projects amid the AI boom.
 
The call came as SK hynix, a second-tier subsidiary of SK Group controlled through an intermediate holding company, SK Square, is obligated to hold full ownership when establishing a third-tier subsidiary.
 

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Earlier this month, the government vowed to take steps to lower the ownership requirement to 50 percent in line with efforts to offer more leeway to chipmakers in raising investment.
 
"Amid the intensifying competition for cutting-edge technologies in the AI era, the volume and methods of investment have totally changed from the past," SK hynix said in a rare statement posted on its website.
 
"Discussions on improving investment-related regulations should not focus on a specific firm or a separate case, but on how investment in cutting-edge industries can continue amid the fast-changing environment," it added.
 
For example, SK hynix said the amount of cash needed to build a 33,000-square-meter (355,209 square-foot) clean room was estimated at 7.5 trillion won ($5.14 billion) in 2019, when the company announced the Yongin semiconductor cluster project, but rose to 20 trillion won for the equivalent at its new M15X fabrication plant which opened in 2025.
 
The chipmaker noted that businesses face challenges in raising funds for super-sized and long-term investment projects under existing methods.
 
Should a second-tier subsidiary be allowed to establish a special purpose company jointly with external investors, it would significantly ease the company's financial burden and improve its overall financial health, SK hynix argued.
 
"Considering the semiconductor industry experiences high volatility, such flexibility plays a critical role in sustaining investment and maintaining competitiveness," it added.
 

Yonhap
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