SK Hynix, the world's second-largest memory chip maker, has announced that it will invest $75 billion (103 trillion won) in artificial intelligence (AI) through 2028, Reuters has reported. The company is also looking to secure 80 trillion won over the next two years and invest it in AI and semiconductors as well as streamline its 175+ subsidiaries.
SK Hynix's parent, SK Group will use the investment to help improve competitiveness by focusing on AI with a particular focus on high bandwidth memory (HBM) chips, AI data centres, and AI services like personalised AI assistants.
Describing the decision to plough money into AI, SK Group Chairman Chey Tae-won said that it was a "preemptive and fundamental change" which was necessary. With regards to SK Group's subsidiaries, the plan is to reduce the number from 175+ to something more manageable but no specifics were given.
Reuters pointed out that South Korea is home to the two largest memory chip makers; Samsung Electronics and SK Hynix. However, the companies have been falling behind rivals in some areas like chip design and contract chip manufacturing.
To help its chip manufacturers, South Korea has announced a $19 billion support package to help it against global competition.
SK Group's decision to find $75 billion worth of investments for AI is probably a sensible move. While AI is certainly going through a hype stage right now, it will still be widely used by individuals and businesses going forward so having AI-oriented hardware to sell to consumers will definitely put the company on a better footing.
Earlier reporting from Reuters stated that subsidiaries that are likely to be affected include SK Innovation, SK On, SK EcoPlant, SK Materials, and SK Networks. SK Group, like many businesses, is taking these leaner times we find ourselves in to focus its business operations so that it can focus on more profitable activities.
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