- 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.
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
What happened
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.
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.
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Why it’s important
SK Hynix’s huge investment will accelerate the research and development process of AI technology, change many areas of South Korean society, from intelligent manufacturing, medical health to financial services, and expand the application scenarios of AI technology.
The chip is the cornerstone of the modern information industry and is of great significance to national security and economic development. As a leader in the semiconductor industry, SK Hynix’s investment will further strengthen South Korea’s competitiveness in the global chip industry and enhance South Korea’s voice and influence in the global scientific and technological innovation competition.
SK Hynix’s investment will help promote the development of South Korea’s traditional industries in the direction of high-end, intelligent and green, accelerate the transformation and upgrading of the industry, and provide strong support for the sustainable development of the South Korean economy.
