By Meghan Hall
SK Hynix America solutions, considered one of the world’s largest semiconductor suppliers, has snapped up 11-acres of land located right next to its San José office located at 3101 N. First St. According to Santa Clara County documents, the company purchased the 11 acres of land for $31 million at the end of November 2018.
The sale was first reported by the San José Mercury News.
The property is well-positioned within North San José and the greater Silicon Valley on the north side of the Montague Expressway and west of North First Street. Levi’s Stadium, the Santa Clara Convention Center and other major tech employers such as Cisco are located nearby. The property is also about equidistant from Interstate 880 and State Route 101, making the site easily accessible by car.
It is unclear at this time what exactly SK Hynix plans to do with the land, although the property would allow the firm to construct a campus that could far expand its current two-story regional corporate offices. However, the company joins the ranks of other major technology players in Silicon Valley who are snapping up large properties either through leases or purchases in an effort to expand their presence and plan for their futures in the region. Google, who bought two more office buildings at the beginning of November to the tune of $154.5 million, and Apple, who took an additional 16.35 acres divided between two parcels for $79 million in February of this year, are carefully watched as they purchase property in the area. Several of the parcels acquired this year by the two tech giants are also located in North San José, in close proximity to SK Hynix’s new site.
However, for companies planning on expanding and staying within the Bay Area long term, this early planning has become key as available land becomes increasingly scarce. According to SK Hynix’s 2018 Third Quarter Financial results, the company reported its new record-high quarterly revenue and operating profit, which rose by 10 percent and 16 percent, respectively, due to shipment increases. The company plans to “actively respond to market changes through the development of new processes as well as stable operation of mass production facilities,” according to a recent press release.