SK hynix and SK square are jointly investing approximately 100 billion won with domestic representative financial companies in promising overseas semiconductor material, parts and equipment companies.
The two companies announced on July 4 that they have established an investment corporation, TGC SQUARE, with Shinhan Financial Group and LIG Nex1 for efficient overseas semiconductor investment.
They plan to make preemptive investments in semiconductor material and equipment companies with unparalleled technical skills to establish a stable global semiconductor supply chain and enhance advanced technical competitiveness. For this, the investment corporation has established a Semiconductor Advisory Committee that provides technical insight from global top-tier semiconductor company experts to construct a professional investment review system.
Co-investing company LIG Nex1 participates as a member of the TGC SQUARE Corporation’s board. The investment corporation has left open the opportunity for co-investment for companies wishing to participate additionally, starting with this 100 billion won (US$77 million).
The investment corporation plans to maximize mutual synergy by actively utilizing overseas investment bases operated by SK ICT affiliates, identifying and co-investing in excellent overseas companies with technological prowess from the deal sourcing and technology verification stage. SK ICT affiliates are currently operating various investment corporations in Japan and the United States such as SK telecom Japan, SK hynix Ventures, SK square America, and SK telecom America.
SK square and SK hynix are considering a small Japanese semiconductor company as their first investment target. They plan to invest approximately 60% of the currently raised investment fund in Japanese semiconductor material and equipment companies. Japan is recognized as a powerhouse in the field of semiconductor material and equipment around the world. Many companies specialized in high-end technology that is difficult to replace are based there.
SK square and SK hynix intend to operate a semiconductor investment network in Japan and will be focusing on potential investment targets, including semiconductor inspection equipment developers, eco-friendly semiconductor parts manufacturers, artificial intelligence semiconductor developers, and next-generation semiconductor material developers for technical verification.