The world's second largest memory chip maker, SK Hynix will invest $74.6 billion in the chip business, with a special focus on artificial intelligence (AI) to compete in the semiconductor market.
According to an announcement from parent corporation SK Group on Sunday, this huge investment will be deployed from now until 2028, showing SK Hynix's great ambitions to gain market share in the AI industry. The investment focus will be on areas such as high bandwidth memory (HBM) chips, AI data centers and personalized AI services.
This move comes in the context that SK Hynix and the group's electric vehicle battery segment are facing difficulties in profits. Chairman of SK Group, Mr. Chey Tae-won, emphasized the need for "fundamental and proactive change" in the current transition period.
In addition, SK Group also plans to mobilize 80 trillion won (about 60 billion USD) by 2026 to invest in AI, semiconductors and pay dividends to shareholders. The group is also considering streamlining more than 175 subsidiaries, with the possibility of a merger between SK Innovation (which owns the SK On oil refinery and battery manufacturer) and subsidiary SK E&S.
It is expected that SK Group's pre-tax profit will reach about 22 trillion won this year, after reporting a loss last year. The group's goal is to reach 40 trillion won in pre-tax profits by 2026.
South Korea, home to the world's leading memory chip makers Samsung Electronics and SK Hynix, is facing stiff competition from rivals in chip design and contract manufacturing. .
Earlier this year, the Korean government announced a $19 billion support package for the chip industry, aiming to maintain its competitive position in the global semiconductor market.
