South Korea's SK Hynix to Invest $75 Billion in AI and Chips by 2028

South Korea's SK Hynix, the world's second-largest memory chip maker, plans to invest $75 billion by 2028 to enhance its chips business with a focus on artificial intelligence (AI) and semiconductors. This decision follows a two-day strategy meeting aimed at revitalizing the group after significant losses in both its main business and its electric vehicle battery arm. The parent company, SK Group, aims to secure 80 trillion won ($58 billion) by 2026 to invest in AI, semiconductors, fund shareholder returns, and streamline its more than 175 subsidiaries.

The group plans to strengthen its AI value chain, including high-bandwidth memory (HBM) chips, AI data centers, and AI services. SK Group's CEO, Chey Tae-won, emphasized the need for fundamental changes during this transitional period. The group anticipates its profit before tax to be around 22 trillion won this year, with the goal of reaching 40 trillion won by 2025. The investment plans come amid an ongoing legal dispute between Chey and his estranged wife, Roh Soh-yeong, involving a significant property division in their divorce.