SK Hynix plans $74.6 billion investment in AI chips
Its parent company, SK Group, plans to secure 80 trillion won by 2026 for AI and semiconductor investments and shareholder returns while streamlining its over 175 subsidiaries.
South Korea’s SK Hynix, the world’s second-largest memory chip maker, plans to invest 103 trillion won ($74.6 billion) by 2028 to bolster its chip business with a focus on AI. The announcement comes from its parent company, SK Group, which aims to secure 80 trillion won by 2026 for AI, semiconductors, and shareholder returns while streamlining its over 175 subsidiaries.
The investment plan follows a strategy meeting to revitalise SK Group after heavy losses in its main money-making sectors, SK Hynix and its electric vehicle battery arm. SK Group’s strategy includes improving competitiveness in the AI value chain, focusing on high bandwidth memory chips, AI data centres, and personalised AI services. Chairman Chey Tae-won emphasised the need for preemptive and fundamental changes during this transitional period.
Additionally, SK Group plans to reduce the number of its subsidiaries to a manageable range. Local media reports suggest a potential merger between SK Innovation, which owns the country’s largest oil refiner and battery maker, SK On, and the profitable gas affiliate SK E&S. The group anticipates a profit before tax of around 22 trillion won this year, aiming for 40 trillion won by 2026.
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