South Korea’s SK Hynix (000660.KS), the world’s second-largest memory chip maker, will invest 103 trillion won ($74.6 billion) by 2028 to enhance its chips business, with a focus on AI, according to its parent company SK Group’s announcement on Sunday.
SK Group also stated that it plans to secure 80 trillion won by 2026 to invest in artificial intelligence, semiconductors, and shareholder returns, while streamlining its more than 175 subsidiaries.
The conglomerate outlined these plans following a two-day strategy meeting, aiming to revive the group after heavy losses suffered by SK Hynix and the group’s electric vehicle battery division. SK Group aims to boost its competitiveness by focusing on its AI value chain, including high bandwidth memory (HBM) chips, AI data centers, and AI services such as personalized AI assistants.
In a statement, SK Group Chairman Chey Tae-won emphasized the necessity of “preemptive and fundamental change” during this transitional period.
During the meeting, executives agreed to gradually reduce the number of subsidiaries to a “manageable range,” though specific numbers were not provided. Local media reported that SK Innovation (096770.KS), which owns the country’s largest oil refiner and battery maker SK On, might pursue a merger with its profitable gas affiliate SK E&S.
The group expects its profit before tax to reach around 22 trillion won this year, a significant turnaround from a loss last year, with a goal of achieving 40 trillion won in profit before tax by 2026.
South Korea, home to leading memory chip makers Samsung Electronics (005930.KS) and SK Hynix, has lagged behind some competitors in areas such as chip design and contract chip manufacturing. Earlier this year, the government announced a 26 trillion won ($19 billion) support package for its chip businesses to remain competitive in the global semiconductor market.
