Park Jung-ho SK Hynix Vice Chairman "ARM Acquisition, Consortium Discussions Underway" (Comprehensive)

Shareholders' Meeting at Icheon Headquarters on the 30th
Also Announces Future Growth Infrastructure and ESG Management Goals

On the 30th, Park Jung-ho, Vice Chairman and CEO, delivering a greeting at the SK Hynix headquarters in Icheon, Gyeonggi Province.

[Asia Economy Reporter Kim Jin-ho] Park Jung-ho, Vice Chairman and CEO of SK Hynix, clearly expressed his intention on the 30th to actively engage in the acquisition and merger (M&A) of ARM, a UK-based fabless company.

After the regular shareholders' meeting held at SK Hynix headquarters in Icheon, Gyeonggi Province, Park told reporters, "We are discussing the formation of a consortium for the ARM M&A." He added, "ARM is not a company that can be acquired by a single entity," and "We are considering a joint acquisition of shares with other parties."

ARM is a UK-based fabless company. NVIDIA of the United States had previously attempted an M&A, but it was canceled due to opposition from regulatory agencies and other companies.

Park also presented SK Hynix's future vision. At the shareholders' meeting, he emphasized, "SK Hynix, celebrating its 10th anniversary, has grown in ways no one could have imagined," and "We will not be complacent with past achievements but will respond quickly to the rapidly changing environment to leap forward as a global top-tier technology company leading the world semiconductor market."

He also announced a gradual integration plan with ‘Solidigm,’ a subsidiary launched through SK Hynix’s acquisition of Intel’s NAND division last year. Park said, "We will integrate Solidigm and SK Hynix’s SSD business to maximize synergy, strengthen the global operating system, and use it as an opportunity for NAND business growth."

Furthermore, he expressed a commitment to enhancing shareholder value through stabilizing the profit structure. He stated, "We will create a stable profit structure base by improving investment efficiency and productivity through strengthening partnerships with global companies," and "We will raise the annual fixed dividend to 20% and implement quarterly dividends starting this year." He plans to use 50% of the cumulative free cash flow generated over the next three years as additional resources.

Regarding future growth infrastructure, he explained, "The Yongin cluster will establish itself as a core base of the semiconductor ecosystem that coexists with material, parts, and equipment (SoBuJang) partners while responding to long-term demand," and "We will build a research and development (R&D) center in Silicon Valley, USA, and make it a key hub for collaboration with big tech companies."

Regarding ESG management activities, he said that SK Hynix has set an interim goal to procure 33% of its power consumption from renewable energy by 2030 to achieve RE100 by 2050.

Meanwhile, at the shareholders' meeting, SK Hynix approved the agenda as originally proposed, including the new appointment of internal directors Kwak No-jung and Noh Jong-won, and the reappointment of outside director Ha Young-gu. In particular, Kwak, who is in charge of safety and health as the head of Safety Development Manufacturing, was newly appointed as an internal director, which is interpreted as SK Hynix’s intention to strengthen its response to safety regulations.

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