Lee Seok-hee, CEO of SK Hynix, "High COVID-19 Uncertainty, Will Strengthen Competitiveness"

[Asia Economy Reporter Changhwan Lee] SK Hynix stated that although there is significant uncertainty in the market due to the spread of the novel coronavirus infection (COVID-19), it will overcome the crisis by strengthening cost competitiveness and maximizing asset efficiency.

On the 20th, at the regular shareholders' meeting held at the headquarters in Icheon, Gyeonggi Province, SK Hynix CEO Lee Seok-hee evaluated, "This year, a gradual demand recovery was expected, centered on easing customer inventory burdens and increased demand for server and mobile products, but the spread of the coronavirus has affected the overall demand and supply environment, increasing uncertainty about market improvement."

CEO Lee emphasized, "While prioritizing the safety of our members, we will continuously strengthen cost competitiveness and maximize asset efficiency to build resilience against uncertainties." To this end, he explained, "We will begin full-scale production and expand sales of next-generation DRAM and NAND products developed last year within this year to enhance cost competitiveness."

He also added, "Through advanced quality management, we will strive to create products that satisfy customers, that is, No.1 products, and expand their market. We will maximize the efficiency of assets secured during the last boom to optimize investments and increase profitability. Furthermore, as the number of excellent talents has also increased, we will improve human productivity through innovation in work methods."

He also evaluated last year's performance. CEO Lee analyzed, "2019 was a year that recorded the lowest global economic growth rate since the global financial crisis due to weakened investment sentiment caused by the intensified US-China trade conflict from the beginning of the year. Accordingly, the memory industry also experienced a difficult market environment with price crashes due to decreased demand and increased customer inventory."

He said, "Despite these management conditions, we responded flexibly to market situations by quickly adjusting investments and product production compared to the past. As a result, we achieved consolidated sales of 27 trillion won and operating profit of 2.7 trillion won."

He continued, "Last year, we focused on enhancing business competitiveness through technology development and strengthening the foundation for future growth. For DRAM, we strengthened the response capability for high-capacity products by developing the industry's top-level 10-nanometer 3rd generation product, and for NAND, we completed the development of a 128-layer product with improved process efficiency, securing investment reduction and cost competitiveness."

Along with this, he stated, "The construction of the Icheon M16 plant and the establishment of the Yongin semiconductor cluster, which are underway to lay the foundation for future growth, are also progressing as planned."

This content was produced with the assistance of AI translation services.