Kwak Noh-jung, CEO of SK hynix, said on the 10th, "From a technology perspective, we will expand the production of 12-layer 5th generation high bandwidth memory (HBM3E) this year and produce the 6th generation HBM (HBM4), while maintaining our lead in 10-nanometer 6th generation DRAM (1c) and 10-nanometer 7th generation DRAM (1d). We will also respond well to conditions that allow NAND to ride the AI boom."
On that day, Kwak held a "Together the THE Communication Event" at SK hynix's Cheongju campus and told employees, "The most important thing to maintain our number one position in the AI flow is technology," adding, "The recent transition of the CMOS image sensor (CIS) business also required a concentration of capabilities in the AI field, so it was a decision made for that reason." SK hynix announced on the 6th that it will integrate the CMOS image sensor (CIS) business sector, which had been underperforming, with the AI memory field to focus its capabilities.
SK hynix's management holds communication events every quarter where the CEO listens directly to employees' stories and explains various management issues. The communication event was broadcast live to all SK hynix business sites in Korea. The event featured Kwak, along with Kim Joo-sun, president of AI infrastructure, Song Hyun-jong, president of corporate center, Ahn Hyun, senior vice president in charge of development, Cha Seon-yong, vice president of the Future Technology Research Institute, and Kim Young-sik, vice president in charge of mass production.
SK hynix's executives also discussed the fierce competition from Chinese companies and their countermeasures. Recently, Chinese memory companies, including Changxin Memory Technology (CXMT), Fujian Jinhua (JHICC), and Yangtze Memory Technology (YMTC), have been threatening South Korean companies with aggressive supply strategies. Song noted, "The rise of Chinese companies is not good news," adding, "We are at a disadvantage in competition with Chinese companies that receive subsidies from the Chinese government. Ultimately, the only answer is to make better products faster and cheaper than them."
SK hynix aims to find breakthroughs through technological superiority and operational efficiency. Kwak stated, "Last year, there was an operational improvement effect from the efficiency of capital expenditure (CAPEX) and operational expenditure (OPEX)," and added, "We will also upgrade the operational improvement governance system going forward."
Recently, Kwak apologized for the growing dissatisfaction among employees regarding performance bonuses. Earlier this year, the company achieved its largest-ever results (operating profit of 23.4673 trillion won) and distributed a performance sharing (PS) bonus equivalent to 1500% of the base salary; however, conflicts arose based on the union's claim that a higher level of special performance bonuses should be granted.
Kwak said, "There has been a lack of communication regarding PS recently, and I apologize for the discomfort this caused employees," adding, "The company's mistake was failing to present objective indicators to avoid confusion."
Meanwhile, it is reported that the labor and management at SK hynix will discuss wage increases and negotiations for PS surplus through formal procedures related to wage negotiations scheduled for April.