In the age of artificial intelligence (AI), memory competitiveness is corporate competitiveness.
Kwak Noh-jung, president of SK hynix, said this at the 2026 annual general meeting of shareholders held at the Icheon headquarters in Gyeonggi on the 25th, and laid out a strategy to expand investment centered on AI memory and strengthen production infrastructure.
SK hynix said it will respond to the AI era by strengthening a business structure that goes beyond high bandwidth memory (HBM) to encompass DRAM, NAND flash, and next-generation memory. In particular, it said it will continue an aggressive investment stance by establishing advanced packaging bases in the United States and Cheongju and seeking to secure more than 100 trillion won in cash within a few years.
Kwak said, As AI technology spreads across industries, memory has become a core element that determines system performance beyond a simple component, and a structural shift is underway in which demand is expanding across DRAM and NAND, including HBM.
In response, SK hynix will expand its portfolio centered on AI memory. While strengthening its next-generation product lineup including HBM4 (6th-generation HBM), it also plans to secure next-generation memory technologies such as PIM (a technology that integrates computing functions inside memory) and CXL (an interface that high-speed connects CPUs, GPUs, and memory).
In particular, a strategy to expand production bases was presented as a key. The company will secure a mid- to long-term production base through the Yongin semiconductor cluster and push for investment in an advanced packaging plant (PNT) in Cheongju. It aims to secure manufacturing competitiveness spanning front-end and back-end processes. Overseas, it will build an advanced packaging production base in Indiana in the United States to diversify the global supply chain.
In addition, SK hynix said it will establish an AI company in the United States to play a partner role in the AI data center ecosystem and seek to acquire corporations with core AI technologies to pursue opportunities to commercialize solutions.
On financial strategy, it emphasized securing capacity for large-scale investment. Kwak said, To respond to future demand, we need financial strength that allows stable investment execution, and we aim to secure more than 100 trillion won in cash within a few years.
Kwak also mentioned plans to pursue an ADR (depository receipts) listing on the U.S. stock market. The company privately submitted an application for ADR listing to the U.S. Securities and Exchange Commission (SEC) on the 24th of this month and said it is preparing for a listing in the second half of this year.
◇ Why gather 100 trillion? Shareholder backlash… clash over shareholder returns and ADR method
At the meeting, shareholders continued to raise issues over the shareholder return policy and funding methods. One shareholder said, It is hard to understand why you are seeking to secure more than 100 trillion won in cash while making so much profit, adding, The explanation of shareholder returns, such as increasing dividends or canceling treasury shares, is insufficient. The shareholder also raised the issue, asking, Can't you pursue the ADR using treasury shares rather than issuing new shares?
In response, Kwak said, Based on last year's results, we carried out about 14 trillion won in shareholder returns through a special dividend of 1,500 won and the cancellation of treasury shares, adding, We are actively reviewing additional dividends and share buybacks this year as well. He explained, There is only a sequencing difference in pursuing investment and shareholder returns at the same time, and it will ultimately lead to enhanced shareholder value.
Kwak also emphasized, We are at a stage where the financial structure has just begun to improve, and our investment capacity is not sufficient compared with global competitors, adding, Securing a certain amount of cash is necessary for sustainable growth.
On the Kioxia investment, he said, There is no plan to convert to common stock, and we are prioritizing maximizing investment value, adding, We will share with shareholders when the plans for using essential funds become clear.
◇ Intensifying high bandwidth memory (HBM) competition, respond with comprehensive technological prowess
On competition in the HBM market, it emphasized technological competitiveness. Kwak said, HBM is a product that combines not only process technology but also various elements such as packaging, and the company's comprehensive technological prowess determines competitiveness, adding, We will maintain market leadership based on superior performance and mass production stability.
He also explained, Supply is proceeding in line with current customer schedules and volumes. On the supply structure, he said, HBM is a market with limited supply, and contract discussions are taking place with client companies centered on medium- to long-term supply stability. On next-generation products such as HBM4, he explained, Development and sample supply are proceeding as planned.
Kwak said, The AI industry is ecosystem competition, not that of individual corporations, adding, We will strengthen cooperation with global customers and partners to create differentiated value and share the results with shareholders.