SK Hynix, South Korea’s second-largest chipmaker after Samsung, has announced plans to invest $74.6 billion over the next three years to advance memory chip technologies focused on artificial intelligence (AI). Additionally, its parent company, SK Group, aims to secure another $57.8 billion by 2026 to bolster its AI initiatives, bringing the total potential investment to nearly $133 billion.
This substantial investment follows SK Hynix’s earlier commitment in March to spend $90 billion on a chip fabrication facility near Seoul. Despite facing significant losses in its chip and vehicle battery sectors, SK Group views the focus on AI as a strategic move to recover financially and secure its future.
The company plans to streamline operations by reducing its current 175 subsidiaries to better align with its AI development goals. The AI sector remains fiercely competitive, dominated by tech giants like Google, Microsoft, and Nvidia. However, the semiconductor market, crucial for AI advancements, is seeing increased competition beyond Silicon Valley.
With the rising demand for AI-capable chips contributing to a global shortage, SK Group anticipates that its investment strategy will boost profits from an estimated $16 billion in 2024 to nearly $30 billion by the end of 2025.
