2028: South Korea’s Chip Maker, SK Hynix, to Invest $75bn in AI, Chips

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The second-biggest global memory chip manufacturer, SK Hynix, of South Korea, on Sunday is set to invest 103 trillion won ($74.6 billion) through 2028 to expand its semiconductor business with an emphasis on artificial intelligence.

A statement by SK Group Chairman Chey Tae-won disclosed this.

Indeed, some 20 senior executives met for two days to discuss the performance of important enterprises and to choose the course for the future, including action plans for various organisations.

In the face of fierce AI rivalry from its tech competitors, the group’s strategic focus will be on improving its AI value chain.

This spans from AI chips to data centres to AI services, to maintain its worldwide competitiveness.

Along with streamlining its 175+ companies, the corporation hopes to raise 80 trillion won over the next two years and invest it in semiconductors and artificial intelligence.

With an emphasis on high bandwidth memory (HBM) chips, AI data centres, and AI services like customised AI assistants, SK Group, the parent company of SK Hynix, plans to leverage the investment to help increase competitiveness.

At a time of transition, a “preemptive and fundamental change is necessary,” Tae-won said.

The executives decided to reduce the number of subsidiaries in the group gradually to a “manageable scale” at the meeting, although they did not say how much would be reduced.

The government unveiled a 26 trillion won ($19 billion) support package for its chip industries earlier this year, stressing the necessity to be competitive in the face of “all-out warfare” in the global semiconductor industry in sectors including chip design and contract production.

Earlier report stated that Rebellions Inc. and Sapeon Korea Inc. want to secure a major lead in the AI semiconductor market, as AI is seeing a global surge with a proposed merger.