SK Square, the investment arm of SK Group, said Tuesday that it has set up a semiconductor investment company in Singapore, with a total investment of 100 billion won ($77 million) together with SK hynix, Shinhan Financial Group and LIG Nex1 and others.

The new firm, TGC Square, aims to finance global and domestic chip companies specializing in manufacturing and supplying semiconductor components and equipment.

The company plans to spend nearly 60 percent of its initial investment funds on Japanese semiconductor equipment manufacturers. Currently, four candidates in the country are under review.

Choi Woo-sung, who doubles as a managing director for SK Square’s semiconductor investment team and a representative of SK Telecom Japan, will serve as the CEO of the new investment company.

The company will operate its own investment review committee, consisting of experts from major chip companies worldwide. Through leveraging its overseas investment hubs operated by SK ICT, it plans to identify and fund technologically advanced overseas chip companies.

"Through overseas joint investments from SK Group’s key affiliates and the country’s leading financial institutions, this project expands the semiconductor industry ecosystem,” Choi said.

“By bolstering ties with globally renowned overseas semiconductor manufacturers, we will lay the key foundation for the promising future of our chip industries.”

The latest move comes as industry players seek to consolidate the domestic semiconductor value chain amid protectionist policies launched by key markets.

TGC Square expressed high expectations of its investment outcome in Japan, citing the favorable investment environment there, especially after its government unveiled a plan to nurture the semiconductor industry.

Japan is a global manufacturer of semiconductor equipment, housing top-ranked companies accounting for over 30 percent of the global market share.

TGC Square is also eyeing investments in other regions outside Japan while continuing domestic investments.

It also plans to pour resources into enhancing its corporate value such as through mergers and acquisitions, and going public in the market.