SK Hynix to Invest US$75 Billion by 2028 in AI and Memory Chips as Part of SK Group’s Major Overhaul
SK Hynix, the world's second-largest memory chip maker, plans to invest US$75 billion by 2028 to enhance its chips business, with a focus on AI. The conglomerate plans to streamline its network of over 175 subsidiaries. SK Group aims to improve competitiveness by focusing on its AI value chain, including HBM chips, AI data centers, and personalised AI assistants.
The investment was revealed by SK Group, the parent company of SK Hynix, during a recent strategy meeting aimed at revitalising the conglomerate.
In addition to SK Hynix's investment, SK Group intends to secure 80 trillion won by 2026 to invest in AI and semiconductors, as well as to fund shareholder returns. The conglomerate also plans to streamline its extensive network of over 175 subsidiaries.
The strategic move comes as SK Hynix and the group's electric vehicle battery arm faced significant losses. To improve its competitiveness, SK Group aims to concentrate on its AI value chain, which includes high bandwidth memory (HBM) chips, AI data centers, and personalised AI assistants.
SK Group Chairman Chey Tae-won emphasised a "preemptive and fundamental change is necessary" during the meeting. The executives also agreed to gradually reduce the number of subsidiaries to a more manageable range, although the specific scale of the reduction was not disclosed.
There have been speculations in the local media that SK Innovation, which owns the country's largest oil refiner and battery maker SK On, may pursue a merger with profitable gas affiliate SK E&S. However, no official confirmation has been provided.
The group has set ambitious financial targets, aiming for a profit before tax of approximately 22 trillion won this year, rebounding from last year's losses.
South Korea, known for being home to leading memory chip manufacturers Samsung Electronics and SK Hynix, has been facing challenges in areas such as chip design and contract chip manufacturing. Earlier this year, the government announced a 26 trillion won support package for the country's chip businesses to ensure competitiveness in the global semiconductor market.
SK Hynix, the world's second-largest memory chip maker, plans to invest US$75 billion by 2028 to enhance its chips business, with a focus on AI.
The conglomerate plans to streamline its network of over 175 subsidiaries.
-SK Group aims to improve competitiveness by focusing on its AI value chain, including HBM chips, AI data centers, and personalised AI assistants.
Source: REUTERS