South Korea’s SK Hynix to invest $75 billion by 2028 in AI, chips

SEOUL : South Korea’s SK Hynix, the realm no.2 memory chip maker, will invest 103 trillion won ($74.6 billion) thru 2028 to toughen its chips industry, focusing on AI, its parent SK Community acknowledged on Sunday.

SK Community additionally acknowledged it plans to staunch 80 trillion won by 2026 to spend money on artificial intelligence and semiconductors to boot to fund shareholder returns, while streamlining its bigger than 175 subsidiaries.

The sprawling conglomerate outlined the plans following a two-day technique assembly, aiming to revive the community after SK Hynix, its main cash maker, and the community’s electric automobile battery arm suffered heavy losses.

SK Community acknowledged it sought to beef up its competitiveness by focusing on its AI value chain, along with high bandwidth memory (HBM) chips, AI knowledge centres and AI providers comparable to personalized AI assistants.

At a time of transition, a “preemptive and most main change is needed,” SK Community Chairman Chey Tae-won changed into once quoted as announcing within the assertion

At some stage within the assembly, the executives additionally agreed to assign end late steps to regulate the collection of subsidiaries within the neighborhood to a “manageable range”, with out specifying the size of the bargain.

Local media had acknowledged SK Innovation, which owns the county’s largest oil refiner and battery maker SK On, changed into once expected to pursue a merger with worthwhile gasoline affiliate SK E&S.

The community expects its income sooner than tax to reach round 22 trillion won this year, turning round from a loss last year, with the goal of hitting 40 trillion won in income sooner than tax by 2026.

South Korea, house to the realm’s high memory chip makers Samsung Electronics and SK Hynix, has fallen at the aid of some opponents in areas comparable to chip invent and contract chip manufacturing.

Earlier this year, the authorities presented a 26 trillion won ($19 billion) give a hold to kit for its chip agencies, citing a wish to assign in areas admire chip invent and contract manufacturing amid ‘all-out battle’ within the worldwide semiconductor market.

($1 = 1,380.7300 won)