According to TechFlow, South Korea's second-largest chipmaker SK Hynix plans to invest $74.6 billion over the next three years to focus on the development of artificial intelligence (AI) memory chip technology. The parent company SK Group also plans to raise another $57.8 billion by 2026 to further support its AI business.
SK Group has recently suffered heavy losses on Hynix and its electric vehicle battery subsidiary. If the second round of funding is successfully raised, the total investment will be close to $133 billion, while SK Hynix's current market value is only about $118 billion. SK Group believes that these investments and the sharp focus on AI technology will help to offset the losses and ensure the company's financial future.
In addition, SK Group plans to reduce the number of subsidiaries from the current more than 175 to streamline operations and achieve its goals. SK Group expects its profits to increase from an estimated $16 billion in 2024 to nearly $30 billion by the end of 2025 through its current investment strategy.
