Looking Back at the Shining Moments of SK Hynix on Its 40th Anniversary

40th Anniversary Since Founding on October 10, 1983
Business Achievements Through Indomitable Spirit of Challenge

SK Hynix has celebrated its 40th anniversary. Since starting its business in 1983 in South Korea, a barren land for the semiconductor industry at the time, the company has continuously achieved results, reaching its highest-ever operating profit in 2018 and announcing a new era with the Yongin cluster last year.

On the 10th, SK Hynix marked its founding anniversary by reflecting on 40 years of business and selecting decisive moments to share in its newsroom. The key milestones by year include ▲the first successful trial production of 16K S-RAM in Korea (1984) ▲launch of the Blue Chip Project (2001) ▲official establishment of SK Hynix (2012) ▲record-high operating profit achievement (2018) ▲start of the Yongin semiconductor cluster development (2022).

When SK Hynix (then Hyundai Electronics Industry) embarked on its semiconductor business in 1983, there was no understanding of the electronics industry. This led to significant difficulties not only in establishing and starting construction of the semiconductor factory site but also in product development and production setbacks. However, after trial and error, in December 1984, the company announced the first successful trial production of 16K S-RAM in Korea. This marked the birth of the company's first semiconductor good die (a properly functioning chip).

SK Hynix Reborn through SK Group Acquisition in 2012 / [Image Source=Captured from SK Hynix Newsroom]

However, mass production systems were not established after the prototype production. Despite this, the company did not give up but continued its business with relentless trial and error. As a result, 40 years later, SK Hynix has grown into a major semiconductor company showcasing advanced memory semiconductors such as High Bandwidth Memory (HBM) and Double Data Rate (DDR)5 DRAM.

Entering the 2000s, the company faced significant business challenges. The maturity of corporate bonds coincided with the International Monetary Fund (IMF) foreign exchange crisis, and debts surged due to the merger with LG Semiconductor. To make matters worse, the bursting of the dot-com bubble caused a sharp decline in PC sales, leading to a continued drop in DRAM prices. While there were evaluations inside and outside the company that selling overseas was the only option, the company did not yield. In 2001, it carried out a large-scale restructuring, changed its name to 'Hynix Semiconductor,' and launched the 'Blue Chip Project,' a project critical to the company's fate.

The Blue Chip Project focused on process innovation to achieve maximum synergy with minimal investment. It simplified processes by combining the strengths of domestic campuses in Icheon and Cheongju as well as the Eugene campus in the United States. Without introducing new equipment, the company improved existing equipment to reduce investment to one-third and developed ultra-fine circuit line width process technology that enhanced cost competitiveness. After this project, the company was able to regain momentum.

2012 was a decisive year that changed the company's fate. At that time, Hynix Semiconductor met SK and was reborn as SK Hynix. Although the semiconductor market was unfavorable and the company's performance was sluggish, SK saw potential in the company and decided to invest. Since then, SK Hynix has shaped its portfolio around related products in line with the industry trend shifting toward mobile and expanded production bases, establishing itself as a comprehensive semiconductor company.

With the establishment of the Yongin Semiconductor Cluster, SK Hynix dreams of creating a semiconductor triangle hub with 'Icheon, Cheongchu, and Yongin' / [Image source=Captured from SK Hynix Newsroom]

Thanks to these efforts, SK Hynix achieved its highest-ever performance in 2018. That year, sales reached KRW 40.4451 trillion, and operating profit was KRW 20.8438 trillion. The memory industry was experiencing an unprecedented boom at the time. The company quickly grasped the rapidly changing market conditions and took proactive steps such as expanding new processes centered on server products.

SK Hynix is preparing a new base for even greater business leaps in the future. After announcing plans to develop the Yongin semiconductor cluster in 2019, it has been actively working on related tasks since last year. Once the ongoing foundational construction is completed, the first semiconductor fab (factory) within the cluster is scheduled to be completed in 2027.

The company plans to fully launch the 'I·Cheong·Yong' era based on three bases: Icheon and Cheongju campuses as well as the Yongin cluster. Icheon will serve as the headquarters with research and development (R&D), mother fab, and DRAM production base. Cheongju will be the NAND flash-centered production base, and Yongin will be the DRAM and next-generation memory production base as well as a semiconductor coexistence ecosystem hub. The plan is to present a global top-tier semiconductor triangular axis mecca.

SK Chairman Chey Tae-won visited the Yongin cluster construction site last month and said, "The Yongin cluster is the most planned and strategically promoted project in SK Hynix's history," urging to write a new history of challenge and innovation.

Top 5 Major Activities Timeline Unveiled by SK Hynix on Its 40th Anniversary /
[Image Source=Captured from SK Hynix Newsroom]

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