[CES 2024] SK Hynix Kwak No-jeong "Challenging Market Cap of 200 Trillion Won Within 3 Years"

SK Hynix Media Conference on the 8th
First Press Conference Since 2011 Acquisition
Gwak Nojeong "Considering Memory Production Cut Reduction in Q1"

SK Hynix CEO Kwak No-jeong is conducting a Q&A session. Photo by SK Hynix

Kwack No-jeong, President of SK Hynix, announced that the company will challenge a market capitalization of 200 trillion won within three years by leading with AI semiconductors.

Challenging Market Cap of 200 Trillion Won Within 3 Years

On the 8th (local time), at a media conference held a day before the opening of the world's largest home appliance and IT exhibition 'CES 2024,' President Kwack stated, "If we properly prepare the products currently in production, maximize investment efficiency, and maintain financial soundness, I believe it is feasible to challenge a market capitalization of 200 trillion won within three years from the current market cap of about 100 trillion won." This media conference was the first press conference since the company changed its name to SK Hynix in 2012.

President Kwack also shared his thoughts on the timing of ending production cuts. He said, "For DRAM, changes will likely be needed in the first quarter, and for NAND flash, we plan to respond after observing the market situation following the second and third quarters," adding, "Although the improvement speed of NAND market conditions is slow, it seems we have escaped the worst situation." He continued, "For DRAM, supply adjustments will be made for products with weak demand, and for NAND, production cuts will be eased and production reduced flexibly with differentiation by product."

He also mentioned the challenges posed by the rapidly changing external economic environment since his inauguration. President Kwack said, "The semiconductor industry, especially the memory semiconductor sector, has faced unprecedented situations, causing various difficulties," and explained, "The macro environment has changed so rapidly that it was hard to predict, and it has approached in a regionally critical manner."

SK Hynix executives are conducting a Q&A session. From the left in the photo are President Kim Juseon, Head of AI Infrastructure; Vice President Kim Jonghwan, Head of DRAM Development; CEO Kwak Nojung; Vice President Kim Youngsik, Head of Manufacturing Technology; and Vice President Choi Woojin, Head of P&T. Photo by SK Hynix

The Era of AI Semiconductors Opens... Memory Will Be Key

The President of SK Hynix stated that memory will play a central role in data processing in the AI era. Kwack said, "As generative AI becomes widespread, the importance of memory will increase further," adding, "As AI system development accelerates, customer demands for memory are diversifying."

President Kwack emphasized, "Through this, SK Hynix is leading the 'Memory Centric AI Everywhere' era across various fields including AGI, data centers, mobile, and PCs."

SK Hynix supplies ultra-high-performance products such as HBM3 and HBM3E, high-performance high-bandwidth memory (HBM) DRAM products for AI, high-capacity server memory called High Capacity TSV DIMM, the world's fastest mobile memory LPDDR5T, and memory module products DIMM mainly used in PCs and servers. Kwack stated, "We will continue innovation with next-generation interfaces like CXL (Compute Express Link) for efficient use of high-performance computing systems and QLC (Quad-Level Cell) storage, which facilitates high capacity implementation."

Regarding securing competitiveness to lead the HBM market, President Kwack said, "We have consolidated internal capabilities related to HBM and created a new organization dedicated to HBM," adding, "We are preparing strategies to accelerate this organization, and through this, we will continue to perform well in the HBM market."

SK Hynix plans to actively respond to the diverse customer demands in the AI era. Kwack said, "For some customers, capacity and power efficiency may be important, while others may prefer bandwidth and information processing capabilities," adding, "To meet these demands, we are preparing a customized memory platform unique to SK Hynix."

He explained, "This platform is designed to optimally integrate the company's AI memory technology and research and development (R&D) capabilities with each customer's requirements," and added, "Through this, we will present new value beyond existing methods and provide optimal memory solutions specialized for each customer."

President Kwack also introduced plans to establish the Yongin Semiconductor Cluster, a new memory production base on a 4.15 million square meter site in Yongin, Gyeonggi Province, with an investment exceeding 120 trillion won, stating, "We will supply the world's best memory in a timely manner in the AI era, which is growing explosively beyond existing customer demand."

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