Trends
SK Hynix will invest $75B in AI and chips by 2028
OUR TAKEWhile South Korea is home to the world’s largest memory chip makers Samsung Electronics and SKHynix, it has fallen behind some rivals in areas such as chip design and contract chip manufacturing. Earlier this year, the South Korean government announces a $19 billion support package for chip …
Headline
OUR TAKEWhile South Korea is home to the world’s largest memory chip makers Samsung Electronics and SKHynix, it has fallen behind some rivals in areas such as chip design and contract chip manufacturing. Earlier this year, the South Korean government announces a $19 billion…
Context
OUR TAKE While South Korea is home to the world’s largest memory chip makers Samsung Electronics and SKHynix, it has fallen behind some rivals in areas such as chip design and contract chip manufacturing. Earlier this year, the South Korean government announces a $19 billion support package for chip companies, citing the need to keep pace amid a “fully export-oriented” global semiconductor market. –Zora Lin, BTW reporter South Korea’s SK Hynix will invest $74.6 billion by 2028 to strengthen its chip business with a focus on artificial intelligence, parent company SK Group said on June 30. SK Group also said it plans to secure 80 trillion won by 2026 to invest in artificial intelligence and semiconductors, as well as fund shareholder returns, and streamline more than 175 subsidiaries.
Evidence
Pending intelligence enrichment.
Analysis
South Korea’s SK Group is best known for its chip company SK Hynix, but has lost billions of dollars in its electric vehicle battery division over the past decade. The plan is to revive the group. SK Group says it will focus on AI value chains such as high bandwidth memory (HBM) chips, AI data centers, and AI services such as personalized AI assistants. SK Motor Group expects this year’s pre-tax profit to reach $15.9 billion, reversing last year’s loss. Also read: Rebellions and Sapeon merge to challenge chips giants NVIDIA Also read: Samsung reshuffles semiconductor leadership, boosts AI market
Key Points
- SK Hynix’s investment aims to strengthen its AI and chip business, boost the group’s confidence and reverse the loss situation.
- SK Group also plans to invest $57.9 billion in artificial intelligence and semiconductors by 2026 and streamline many of its subsidiaries.
Actions
Pending intelligence enrichment.
