South Korea’s SK Hynix Inc., the semiconductor division of SK Group, has announced an ambitious plan to invest 103 trillion won (approximately $74.8 billion) through 2028. This substantial investment underscores the company’s commitment to the semiconductor sector, which it views as vital for securing the future of its diverse business operations.
A significant portion of the investment, about 80%, or 82 trillion won, will be dedicated to high-bandwidth memory (HBM) chips. These chips are particularly optimized for use with Nvidia Corp.’s artificial intelligence (AI) accelerators, reflecting SK Hynix’s strategic focus on AI-driven technologies. Additionally, SK Telecom Co. and SK Broadband Co., subsidiaries of SK Group, will contribute 3.4 trillion won to enhance their data center capabilities as part of their broader AI initiatives.
This investment announcement follows the annual strategy meetings led by SK Group Chairman Chey Tae-won, along with about 20 top executives. These marathon discussions, spanning 20 hours over two days, were centered on charting the future direction of South Korea’s second-largest conglomerate after Samsung. The meetings addressed critical business areas, including energy, chemicals, and batteries, reflecting the group’s diverse portfolio.
The stakes are notably high this year, partly due to Chairman Chey’s personal circumstances, including the need to secure $1 billion for a divorce settlement. This financial pressure has led to speculation about potential strategic maneuvers to bolster the conglomerate’s financial standing.
The executives concluded that SK Group aims to generate 80 trillion won in revenue by 2026 through business operations and strategic overhauls. They also set a goal to secure 30 trillion won in free cash flow over the next three years, aiming to maintain a debt-to-equity ratio below 100%. Despite losing 10 trillion won last year, the group anticipates a pretax profit of 22 trillion won this year, with aspirations to double that figure to 40 trillion won by 2026.
This is the first comprehensive disclosure of SK Hynix’s investment plans through 2028. Earlier this year, the company revealed several major initiatives, including a $3.87 billion investment in an advanced packaging plant and research center for AI products in Indiana. Domestically, SK Hynix is investing $14.6 billion in constructing a new memory chip complex and is progressing with other projects, such as the Yongin Semiconductor Cluster.
These investments highlight SK Hynix’s focus on expanding its semiconductor capabilities, particularly in areas with high growth potential like AI and data centers. This strategic move positions the company as a key player in the global semiconductor industry, particularly in high-performance computing and AI applications, aligning with broader trends in technology and digital transformation.
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