SK Hynix Bets Big on AI

South Korean chip manufacturer SK Hynix has announced plans to invest $74.6 billion by 2028 in production facilities focused on artificial intelligence. Concurrently, its parent company, SK Group, aims to raise $57.9 billion in investments in semiconductors, process optimization, and AI technologies.

This strategic shift comes in response to falling revenues at SK Hynix and its other arms, including those manufacturing batteries for electric vehicles. Analysts at the company believe that prioritizing the production of high bandwidth memory chips, providing AI services, and enhancing data processing capabilities will improve financial results.

As part of these long-term strategies, SK Group also plans to adjust the number of its subsidiaries to streamline management and reduce overhead, although the extent of these reductions has not been disclosed. Overall, the corporation has set a bold objective to achieve a pre-tax profit of approximately $28.9 billion by 2026.

Previously, the South Korean government allocated $19 billion to support local chip makers, enhancing their competitive edge in the global market. Similarly, the U.S. government has provided Intel with $8.5 billion to establish manufacturing operations within the United States.