SK hynix has announced plans to invest $74.6 billion over the next 3 years to strengthen its dominance of the memory market, which the South Korean memory giant commands 35% of the DRAM market already.
SK hynix has started construction of its massive $90 billion "mega fab complex" in Gyeonggi Province, with Reuters reporting that SK hynix's parent company, SK Group, will spend another $58 billion on top of its $74.6 billion investment, into AI and semiconductors so that it can "improve its competitiveness by focusing on its AI value chain".
The gigantic new investment streams were outlined during a two-day strategy meeting, aiming to revive the group after SK hynix -- its main money maker -- and SK Group's electric vehicle (EV) battery arm after it "suffered heavy losses" reports Reuters.
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- Read more: SK hynix speeds up HBM development: HBM4 in 2025 and HBM4E now coming in 2026
- Read more: SK hynix GDDR7 memory expected to enter mass production in Q1 2025, behind GDDR7 competitors
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- Read more: SK hynix says most of its HBM for 2025 is sold out already, 16-Hi HBM4 coming in 2028
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SK Group aims to bolster its competitiveness in the AI market, including High Bandwidth Memory (HBM) chips, AI data centers, AI servers, and personalized AI assistants. SK Group Chairman Chey Tae-won said at the time of transition that a "preemptive and fundamental change is necessary".
During the meeting, SK executives agreed to take gradual steps to adjust the number of subsidies in the group to a "manageable range," but Reuters added that the executives didn't specify the scale of the reduction.
