SK Hynix (SKHY) is scouting a joint venture to manufacture memory-chips in Japan to meet rising AI-related demand, while controlling production costs, Bloomberg reported Monday.

The South Korea-based maker of dynamic and flash memory chips is considering Japan for a new factory, Group Chairman Chey Tae-won said during informal sessions between South Korean and Japan chambers of commerce, according to the report.

Manufacturers of memory chips are straining to meet demand, as buyers such as Nvidia (NVDA) and data-center builders require the semiconductors to finish projects.

The Japanese government is willing to subsidize projects by international chipmakers, such as those of Taiwan Semiconductor Manufacturing (TSM), which expanding production in Japan, the report said.

Representatives of SK Hynix did not immediately respond to a request for comment from MT Newswires.

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