SK hynix, SK Square and several Korean financiers jointly invested 100 billion won ($76.8 million) to create a fund that will mostly be spent on Japanese semiconductor parts, equipment and material companies.

The move comes as the Korean chipmaker vies to establish a stable supply chain amid a continued power play between Washington and Beijing.

The amount each company contributed to the fund was not disclosed.

The investment will be made through TGC Square, a Singaporean investment-focused company set up by SK Square in April.

TGC Square will allocate 60 percent of the 100 billion won fund for chip components, equipment and material companies in Japan, according to SK hynix. Other fund participants include Shinhan Financial Group, LIG Nex1 and Mirae Asset.

"Collaborating with material, equipment and parts companies that have a competitive edge in chip layout, manufacturing and packaging technology is essential to fortify the semiconductor supply chain," SK hynix said in a release.

"Japan is considered a leading player in the area where the world's top and second biggest players with expertise in high-end technology are present."

TGC Square has formed a semiconductor-dedicated advisory group comprising experts from global semiconductor companies to provide insights into making investment decisions.

Choi Woo-sung, managing director of SK Square's semiconductor investment and head of SK telecom Japan, was appointed CEO of the recently launched TGC Square.

"Japan is currently very open to external investment," SK hynix said.

"Ever since Japan announced its chip industry strengthening policy, it has attracted nearly 2 trillion won in investment from TSMC, Micron and other global chip companies."

TGC Square plans on making further investments in the United States after Japan.

By: DocMemory
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