Recently, SK Group, a leading comprehensive enterprise group in South Korea, announced an ambitious investment plan aimed at significantly enhancing its chip business, particularly in the field of artificial intelligence (AI), by investing 103 trillion Korean won (approximately 74.6 billion US dollars) over the next eight years (until 2028). This strategic decision marks SK Group's firm confidence and commitment to the future development of semiconductor and AI technology.

SK Hynix, the core subsidiary of SK Group, as a globally renowned memory manufacturer, holds approximately 35% of the DRAM market share and maintains a leading position in the high bandwidth memory (HBM) field. Although SK Hynix suffered its first loss in a decade, approximately $3 billion, in 2022, SK Group quickly responded by seeking to reverse the situation and achieve business revival through internal reforms and external investment layout.

According to SK Group, approximately 80% of the funds (i.e. 80 trillion Korean won) in this large-scale investment plan will be directly used for the deepening development of artificial intelligence and semiconductor fields, aiming to enhance overall competitiveness by strengthening the value chain of AI technology applications. This move not only demonstrates SK Group's precise grasp of future technological trends, but also reflects its determination to seek breakthroughs and reshape glory in adversity.

In addition, SK Group plans to allocate a portion of its investment to shareholder returns and optimize and streamline the structure of over 175 subsidiaries to improve operational efficiency and profitability. Meanwhile, SK Telecom and SK Broadband will also invest KRW 3.4 trillion in their data center business, further consolidating their leading position in the field of digital infrastructure.

It is worth noting that SK Hynix has taken the lead by launching a $3.87 billion AI product packaging factory and research center construction project in Indiana, USA, aimed at accelerating the research and application of AI technology using global resources. In South Korea, SK Hynix has invested $14.6 billion to build a new storage chip park and continues to invest in multiple key projects, including the Longren Semiconductor settlement, to consolidate its core position in the global semiconductor industry.

SK Group President Cui Taiyuan and his senior team, after 20 hours of in-depth discussion at the recent annual strategy meeting, finally determined this series of reform and development plans. They have set a target of achieving KRW 80 trillion in revenue by 2026 and plan to ensure free cash flow of KRW 30 trillion within three years, while maintaining a debt to equity ratio below 100%, to demonstrate the group's robust financial foundation and strong growth potential.

SK Group expects that with the gradual implementation of these strategic investments, it will effectively promote a significant improvement in its financial situation. It is expected that this year's pre tax profit will reach 22 trillion Korean won, successfully turning losses into profits. The announcement of this investment plan is not only a positive response of SK Group to future technological trends, but also an important measure for it as a global leading enterprise to seek breakthroughs and lead industry changes in adversity.

Faust Technology focuses on the field of power devices, providing customers with power devices such as IGBT and IPM modules, as well as MCU and touch chips. It is an electronic component supplier and solution provider with core technology.