South Korea’s SK Hynix, the world’s second-largest memory chip maker, has announced a massive investment plan to bolster its chips and AI business.
Investment Plan Overview
SK Hynix will invest 103 trillion won ($74.6 billion) through 2028 to strengthen its chip business, focusing primarily on artificial intelligence (AI). This announcement came from its parent company, SK Group, which outlined the strategic plans following a two-day strategy meeting aimed at revitalizing the group after substantial losses in its key divisions.
Key Investment Areas
- AI and High Bandwidth Memory (HBM) Chips: The company plans to enhance its competitiveness in AI by focusing on high bandwidth memory chips, AI data centers, and AI services like personalized AI assistants.
- Infrastructure and Subsidiaries: SK Group also intends to streamline its operations by reducing the number of its 175 subsidiaries to a more manageable range, enhancing overall efficiency and focus.
Financial Goals and Market Position
- Revenue Targets: SK Group projects its profit before tax to reach around 22 trillion won this year, with a goal of hitting 40 trillion won by 2026, recovering from the losses experienced last year.
- Global Competition: South Korea, home to top memory chip makers Samsung Electronics and SK Hynix, aims to catch up with rivals in chip design and contract manufacturing. The government has announced a 26 trillion won ($19 billion) support package for its chip businesses to maintain competitiveness amid fierce global market competition.
Strategic Importance
SK Group Chairman Chey Tae-won emphasized the need for “preemptive and fundamental change” during the transition period to ensure long-term growth and stability. The conglomerate aims to secure 80 trillion won by 2026 for AI, semiconductor investments, and shareholder returns.
Source: https://www.cioupdate.com.tr/
