SK Hynix To Invest $75-B In AI, Chips By 2028

South Korea's SK Hynix, the world’s second-largest memory chip maker, will invest 103 trillion won ($74.6 billion) through 2028 to strengthen its chips business, focusing on artificial intelligence (AI), its parent SK Group said, Hyunsu Yim reported for Reuters.

SK Group outlined the plans following a two-day strategy meeting. I Photo: SK Hynix

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, while streamlining its more than 175 subsidiaries.

The conglomerate outlined the plans following a two-day strategy meeting, aiming to revive the group after SK Hynix, its main money maker, and the group's electric vehicle (EV) battery arm suffered heavy losses.

The group said it sought to improve its competitiveness by focusing on its AI value chain, including high-bandwidth memory (HBM) chips, AI data centers, and AI services such as personalized AI assistants.

At a time of transition, a "preemptive and fundamental change is necessary," SK Group Chairman Chey Tae-won was quoted as saying in the statement. The executives also agreed to take gradual steps to adjust the number of subsidiaries in the group to a "manageable range," without specifying the scale of the reduction.