SK Hynix, the second largest chipmaker in South Korea behind Samsung, will invest $74.6 billion over the next three years to develop memory chip technologies focused on artificial intelligence .
Parent company SK Group will also seek to secure an additional $57.8 billion to further fund its AI endeavors by 2026,Per the report, SK Group has “suffered heavy losses” as of late through both Hyinx and its vehicle battery subsidiary.
The pivot towards AI will also enable the group to streamline its operations. SK Group is expected to winnow its subsidiaries down from its current count of “more than 175” to something more in line with the group’s current targets and ambition.The world of artificial intelligence is highly competitive at the enterprise level with big tech outlets such as Google, Microsoft, and Nvidia conducting the lion’s share of business. But the semiconductor market is somewhat more competitive.
As more technology companies enter the AI arena, and big tech continues to push the envelope, the demand for chips has skyrocketed and led to a global shortage. SK Group reportedly believes that its current investment strategy will raise its profits from a projected $16 billion in 2024 to nearly $30 billion by the end of 2025.