SK Hynix to Invest $74.6 Billion in AI Chip Development

By 2028, South Korean chipmaker SK Hynix will invest 103 trillion won ($74.6 billion) to bolster its chip development business with a focus on AI. This was reported by Reuters, citing a statement from its parent company, SK Group.

The conglomerate also plans to raise 80 trillion won ($57.6 billion) by 2026 for investments in artificial intelligence, semiconductors, and shareholder returns.

The company outlined these plans following a two-day strategic meeting held after losses incurred by SK Hynix and its electric vehicle battery manufacturing division. The plan includes reducing the number of subsidiaries from the current “more than 175” to a “manageable range.”

“Proactive and fundamental changes are necessary during this transition period,” stated group chairman Chey Tae-won.

SK Hynix is the world’s second-largest memory chip manufacturer and the main revenue source for SK Group. The South Korean giant aims to enhance its competitiveness by focusing on the AI sector, including high-bandwidth memory chips, data centers, and personalized assistants.

In June, Samsung announced a series of upcoming advancements in manufacturing technologies aimed at attracting AI chip creators.

Earlier, two South Korean AI chip startups, Rebellions and Sapeon, announced a merger.