SK Hynix Announces USD75 Billion Investment Plan by 2028
South Korean conglomerate SK Group, parent company of the world’s number two memory chip maker SK Hynix, announced a major investment plan today. SK Hynix will invest 103 trillion won (RM352 billion) by 2028 to strengthen its chip business, with a particular focus on artificial intelligence (AI).
This strategic move comes after SK Hynix and the group’s electric vehicle battery arm faced financial difficulties. SK Group aims to revitalise itself by becoming a leader in the AI value chain. This includes developing high-bandwidth memory (HBM) chips, building AI data centres, and offering AI services like personalised assistants.
Chairman Chey Tae-won emphasised the need for “preemptive and fundamental change” during this period of transition. The group also plans to streamline its operations. They aim to reduce the number of subsidiaries. However, a specific target for reduction wasn’t mentioned.
SK Group expects a turnaround in profitability this year, with a projected pre-tax profit of 22 trillion won. Their ambitious goal is to reach 40 trillion won in pre-tax profit by 2026.
South Korea, a major player in memory chip production with giants like Samsung Electronics and SK Hynix, acknowledges a lag in other areas of the chip industry like chip design and contract manufacturing. The government has also taken steps to address this, announcing a 26 trillion won support package earlier this year to boost these sectors in the face of intense global competition.
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