SK hynix urges government to ease fair trade regulations
Regulatory flexibility is seen as vital for sustaining competitiveness and long-term investment in the volatile semiconductor industry.
SK Hynix has urged the South Korean government to relax fair trade rules to allow the creation of a special-purpose company for raising funds for significant investments. The move comes as the semiconductor firm faces high capital demands amid the global AI boom.
Currently, SK hynix, a second-tier subsidiary of SK Group through SK Square, must retain full ownership when establishing third-tier subsidiaries. The government pledged to cut the ownership requirement to 50 percent, giving chipmakers more flexibility in funding projects.
The company highlighted the rising costs of advanced facilities, noting that a cleanroom at the Yongin semiconductor cluster in 2019 required 7.5 trillion won ($5.14 billion), while the new M15X fabrication plant in 2025 cost around 20 trillion won.
The size and long-term nature of modern semiconductor investments increasingly strain existing methods for raising funds.
SK hynix said letting subsidiaries partner with external investors would ease financial pressure and improve corporate health. The company added that regulatory flexibility is crucial for sustaining investment and competitiveness in a sector marked by high volatility.
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