Gwak No-jung, CEO of SK hynix, said on the 11th, “We have completed the development of the fifth-generation high-bandwidth memory (HBM3E) and laid the groundwork for commercialization while maintaining and enhancing our mass production system and overwhelming competitiveness.” SK hynix began supplying HBM3E 8-layer to NVIDIA in March, marking the industry's first delivery, and started mass production of HBM3E 12-layer products last month, aiming for shipments this quarter.
On the same day, at the SK hynix Icheon campus in Gyeonggi Province, Gwak noted during the ‘Together, The Communication Event’ that he would strive to ensure the payment of excess profit bonuses (PS) by January of next year, before the Lunar New Year, to employees.
SK hynix holds communication events quarterly where the CEO directly listens to employee concerns and explains management issues. Excluding Kim Ju-sun, president of AI Infrastructure, who is on a business trip, speakers at the event included Song Hyun-jong, president of the Corporate Center; Ahn Hyun, head of development; Kim Young-sik, vice president of mass production; and Cha Sun-yong, head of the Future Technology Research Institute (vice president).
PS is an incentive paid annually based on performance, which can amount to up to 50% of the annual salary (1000% of the base salary). Since 2021, SK hynix has been linking PS payments to individual performance based on 10% of the previous year’s operating profit. Given that SK hynix has achieved its highest-ever performance thanks to high-bandwidth memory (HBM), next year's PS is expected to be at its maximum level.
Separately, expectations among employees are rising for a ‘year-end special bonus’ as record high operating profits are anticipated. The special bonus is an additional payment made when performance (operating profit) surpasses the PS criteria. In December 2021, SK hynix paid a special bonus amounting to 300% of the base salary.
Gwak No-jung stated, “We cannot pay in advance based on predictive figures; we will know whether to issue special bonuses only after the fourth-quarter results are released.” He added, “Unlike quantitative aspects, qualitatively, we will strive positively as SK hynix members have achieved leadership in the AI industry and competitive advantages over rivals.”