SK hynix has embarked on a 41-year journey to become a leader in HBM and AI memory

The Rise of SK hynix & Its HBM Propelled by the AI Era

SK hynix’s rise to become the leader in the global memory market has been driven by the growth of the AI industry. Since the emergence of generative AI in 2022, a wide range of products and services have adopted AI as the technology has rapidly evolved. This has led to a surge in demand for high-performance memory, which is essential for processing massive datasets and enabling fast training and inference¹. In response to this demand, SK hynix is providing advanced memory products and thereby playing a defining role in the development of the AI industry.

¹AI inference: The process of running live data through a trained AI model to make a prediction or solve a task.

SK hynix has continually advanced its HBM lineup to reach new standards in performance

SK hynix solidified its capabilities even before the AI boom by focusing on developing the early generations of HBM, a high-bandwidth memory which rapidly transmits large volumes of data. The company then gained market leadership and expanded its influence with the third-generation HBM, HBM2E. HBM3, the successor to HBM2E which is optimized for AI and high-performance computing (HPC), also drew significant attention. Most notably, the company established itself as a key partner in the AI and data center markets by supplying HBM products to NVIDIA. Around this time, SK hynix achieved a 50% market share in the HBM sector to strengthen its HBM leadership.

Moving into 2024, SK hynix has maintained its prominence in the AI memory market. The company began supplying the world’s best-performing 8-layer HBM3E, first developed in 2023, to leading global tech giants in March 2024. Offering maximum data processing speeds of around 1.2 terabytes (TB) per second, HBM3E helped SK hynix further bolster its status as the global no. 1 AI memory provider.

Next-Generation HBM: Utilizing 15 Years of HBM Technology Know-How

SK hynix’s HBM success story can be traced back to 2009. This was the year when the company began full-scale product development after discovering that TSV² and WLP³ technologies could break memory performance barriers. Four years later, the company introduced the first-generation HBM, incorporating these TSV and WLP technologies. Although HBM was hailed as an innovative memory solution, it did not receive an explosive market response because the HPC sector had not yet sufficiently matured enough for widespread HBM adoption.

²Through-silicon via (TSV): A technology that drills thousands of microscopic holes in the DRAM chip and connects the upper and lower chip layers with electrodes that vertically penetrate through these holes.
³Wafer-level packaging (WLP): A method that is a step beyond the conventional package, where wafers are cut into individual chips and then packaged. In WLP, the packaging is completed at the wafer level, producing finished products.

Building on its 15-year HBM history, SK hynix is well-placed to develop next-generation HBM products

Despite this, SK hynix pressed forward, focusing on developing the next generation of HBM and pursuing the goal of achieving the “highest performance.” During this period, the company applied MR-MUF⁴ technology, known for its high thermal dissipation and production efficiency, to HBM2E which changed the market landscape. Building upon this, SK hynix developed Advanced MR-MUF technology, which excelled in thin chip stacking, thermal management, and productivity, and applied it to both HBM3 and HBM3E. Leveraging this technology, SK hynix set a series of industry-best performance records, successfully mass-producing the 12-layer HBM3 (24 GB) in 2023 and the 12-layer HBM3E (36 GB) in 2024.

⁴Mass reflow-molded underfill (MR-MUF): A technology that ensures secure and reliable connections in densely stacked chip assemblies by melting the bumps between stacked chips.

These achievements were driven by a strategy that precisely aligned with the rise of the AI revolution. SK hynix launched its AI memory products at the right time, fully meeting market demands. This was made possible through 15 years of accumulated technological expertise based on research and development, unwavering employee trust in the company’s know-how, and forward-looking strategic investments.

SK hynix has continued taking strategic steps to strengthen its AI leadership in 2024. In April, the company signed an investment agreement to build an advanced packaging production facility in the U.S. state of Indiana which will produce next-generation HBM and AI memory. In the same month, SK hynix entered a technology agreement with TSMC. The deal aims to establish a collaborative three-way framework between the customer, foundry, and memory provider to overcome technological limits and secure an advantage in the AI market.

Beyond HBM: Relentless Innovation & Strengthening the AI Memory Lineup

SK hynix’s pursuits and innovations are unfolding across all areas of memory. The company has established its “memory-centric”⁵ vision and is developing a wide range of memory solutions based on over 40 years of accumulated technological knowledge. In 2024, SK hynix is making concerted efforts to strengthen its lineup with PIM, CXL, and AI SSD products to mark the first year of its renaissance.

⁵Memory-centric: An environment where memory semiconductors play the central role in ICT devices.

SK hynix’s AI memory lineup includes PIM, CXL, and AI SSD products

SK hynix is developing its lineup of processing-in-memory (PIM), an intelligent semiconductor memory which breaks the boundary between storage and computation. PIM, which features a processor for computational functions, is capable of processing and delivering the data required for AI computation. In terms of PIM-based products, SK hynix has launched the GDDR6-Accelerator-in-Memory (AiM) and last year introduced the accelerator card AiMX, an AiM-based accelerator that boosts performance by connecting multiple AiM units. In 2024, the company drew attention by unveiling a 32 GB version of AiMX which offers double the capacity of its predecessor.

SK hynix is also actively investing in Compute Express Link (CXL), a technology that integrates different interfaces such as those for CPUs and memory, to expand memory bandwidth and capacity. In May 2024, the company introduced the CXL Memory Module (CMM)-DDR5 which offers 50% greater bandwidth and double the capacity compared to standard DDR5. Then in September, SK hynix integrated key features of its CXL-optimized software HMSDK⁶ into the open-source operating system Linux, setting a new standard for the use of CXL technology.

⁶Heterogeneous Memory Software Development Kit (HMSDK): SK hynix’s proprietary heterogeneous memory software development tool. Enhances the performance of heterogeneous memory systems, including CXL memory, through effective memory control.

Ultra-high-speed, high-capacity enterprise SSDs (eSSDs) for AI servers and data centers are another area of focus for SK hynix. A prime example is the 60 TB Quad Level Cell (QLC) eSSD, co-developed with the company’s U.S. subsidiary Solidigm. This product stores 4 bits per cell while maintaining low power consumption. Looking ahead, the company is planning to develop a 300 TB eSSD and launch the product in 2025.

The company also offers a robust lineup for on-device AI. SK hynix developed the low-power DRAM, LPDDR5T⁷, in January 2023 to enhance the performance of AI smartphones. In November of the same year, the company unveiled the modularized version of the LPDDR5X, LPCAMM2, which is expected to deliver excellent performance in AI desktops and laptops. SK hynix has also completed the development of the high-performance client SSD (cSSD), PCB01, for AI PCs and the mobile NAND solution for AI, Zoned UFS (ZUFS) 4.0.

⁷Low Power Double Data Rate 5 Turbo (LPDDR5T): Low-power DRAM for mobile devices, including smartphones and tablets, aimed at minimizing power consumption and featuring low voltage operation. LPDDR5T is an upgraded product of the 7th generation LPDDR5X and will be succeeded by the 8th generation LPDDR6.

Shaping the Future of Total AI Memory

Today, AI is being used to write reports, generate images, and create various types of content. In healthcare, AI aids in making diagnoses, while in education AI serves as an assistant for teachers. These are just a small selection of the current applications of AI, and the possibilities for the future are expected to be almost limitless as the technology continues to advance.

SK hynix plans to develop customized AI memory and emerging memory products

At the center of this technological revolution is AI memory. Various AI memory solutions, such as HBM, PIM, CXL, and SSDs, transmit large volumes of data quickly with high bandwidth or send only the processed results directly to the processor, minimizing bottlenecks and enhancing AI learning and inference performance. Furthermore, these technologies improve the energy efficiency of AI systems, contributing to the establishment of more sustainable AI infrastructure. These advanced AI memory technologies are expected to be applied across a wider range of industries such as the automotive and healthcare sectors, enabling faster and more efficient AI services.

To further AI’s development, SK hynix is continuously overcoming technological limitations. The company is focused on developing custom AI memory optimized for each customer in line with the growing diversification of AI services. Moreover, SK hynix is also working on next-generation emerging memory, which is based on new structures and principles as well as innovative components, such as ReRAM⁸, MRAM⁹, and PCM¹⁰. By relentlessly investing in technology development, SK hynix aims to secure differentiated competitiveness with advanced technologies and establish a leading position in future markets.

⁸Resistive RAM (ReRAM): A type of emerging memory with a simple structure containing a filament in which data is stored by applying voltage to the filament. It features a large data storage capacity through process miniaturization and low power consumption.
⁹Magnetic Random Access Memory (MRAM): A type of emerging memory which utilizes both charge and spin, with resistance in the device changing based on the direction of the spin.
¹⁰Phase-Change Memory (PCM): Semiconductor memory which stores data by utilizing the phase change of a specific material (phase-change memory). It combines the benefits of non-volatile flash memory, which retains data even when powered off, with the rapid processing speeds of DRAM.

The semiconductor market itself is poised for significant growth. The World Semiconductor Trade Statistics (WSTS) forecasts that the semiconductor market will expand by 16% year-on-year in 2024. In particular, the semiconductor memory sector is predicted to grow by an impressive 76.8% as demand surges for AI memory such as HBM.

Standing at the forefront of the huge AI wave, SK hynix is preparing for another leap forward by building on its past achievements. As SK hynix celebrates its 41st anniversary, the company aims to maintain HBM leadership while securing dominance in the next-generation semiconductor market to stand alone in an era where its products become “the heart of AI.”

The post [SK hynix’s 41st Anniversary] “Celebrating 40+1” … Harnessing 40 Years of Technological Expertise to Stand Alone as the Global No. 1 AI Memory Provider first appeared on SK hynix Newsroom.

Seoul, Korea, October 19, 2000 – On October 14, Hyundai Electronics Industries Co., Ltd. celebrated the first anniversary of its merger with LG Semicon. Background of the Merger Starting in 1995, the semiconductor industry had suffered from over supply and price cuts resulting from increased production. Thus, the global market had become concentrated around a few large-scale companies. In response to that market situation, the merger with LG Semicon was orchestrated to ensure survival of Hyundai’s Semiconductor business unit and to facilitate its growth in the DRAM market. The Korean government and semiconductor industry leaders agreed to the restructuring in early 1998. The merger was finalized two years later when the newly merged company was launched on October 14, 2000. It was not easy to combine two companies that each had their own separate corporate cultures. However, there was a genuine effort on the part of both organizations to respect each other’s strengths and to foster harmony in the workplace. Prior to the merger, in July of 1999, Hyundai Electronics appointed Mr. Sang-Ho Park as president of the Semiconductor business unit. Previously with Hewlett-Packard and a former vice president of IBM, Mr. Park was chartered with establishing integrated management across the two different cultures. Since then, the Semiconductor business unit has greatly benefited from the synergy resulting from the merger. The business unit’s product development capacity has been strengthened and productivity has increased, along with a decrease in cost. Hyundai’s Semiconductor business unit is now poised to become the world’s leading semiconductor manufacturer. In addition, its “Better than the Best (BttB)” initiative is designed to foster innovation in corporate management, business systems, and culture. Synergy Resulting from the Merger Having attained 9th-place ranking for the first half of this year, Hyundai has secured its position as a leading player in the world semiconductor market. Prior to the merger, Hyundai’s DRAM market share was 11.9 percent and LG Semicon’s was 9.2 percent. However, the successful merger of two companies increased the monthly production capacity of 8-inch wafer from 150,000 pieces to 350,000 pieces, thereby boosting the combined market share to 23.3 percent. The lead time for product development has also been reduced by 6 to 12 months, thus improving time-to-market for next-generation semiconductor products. Results of the merger are as follows: – Sales for the third quarter of 2000 have increased by more than 70 percent, as compared to the same period of time last year – The company has diversified its product offering, thus decreasing its reliance on DRAM to 80 percent of total sales this year, down from more than 90 percent last year – Following the merger, a more stable customer base has been established with long-term contracts increasing from 50 percent to 80 percent of total sales for the business unit Hyundai is able to achieve an operating cash flow of more than US$ 4 billion from the sales of semiconductor products, which is expected to exceed US$ 7 billion yet this year. Therefore, Hyundai will be able to invest even more in technology development to promote continuous growth and to strengthen its competitive position. Strategy for the Semiconductor Business Unit Given Hyundai’s increased capacity and the growth of the semiconductor market, the mid and long-term strategy for the Semiconductor unit is to focus on core businesses in order to maximize profit and minimize risk. To this end, Hyundai will integrate product and technology development plans, thus converging its formerly separate research and development (R&D) staffs. The company will also balance its product portfolio to foster non-DRAM and non-memory businesses in order to build a stable sales structure and improve profitability. Mid and Long-term Vision Hyundai expects sales in the Semiconductor unit to exceed US$ 1.3 billion by 2003 when the strategies outlined above will be fully implemented. The company will then make an appropriate investment and repay its debt through the cash flow created by the sales. This is expected to improve Hyundai’s financial structure and increase its operating profit ratio by as much as 40 percent. Hyundai will also diversify its product portfolio to further reduce DRAM reliance down to 60 percent and to boost the ratio for non-DRAM and non-memory businesses to more than 30 percent. This will enable the company to increase its profitability while securing a balanced business structure. Restructuring and Future Vision Following the semiconductor merger, Hyundai has implemented the following series of restructuring steps, all designed to enhance its competitive strength: Since Dr. C.S. Park assumed the presidency last March, he has increased the number of outside directors on the board in order to achieve a more open style of management and financial structure. In addition, he vigorously pursued visits with overseas investors in Asia, Europe, and the US in order to attract their investments. As a result, Hyundai has succeeded in raising US$ 700 million this year by selling stock to overseas institutional investors. In order to more effectively concentrate on its three core businesses (Semiconductors, Telecommunications, and LCDs), earlier this year Hyundai spun off subsidiaries such as Hyundai Autonet, UPD, and Hyundai Image Quest. Through this series of restructuring efforts, Hyundai has reduced its debt to 9,400 billion Won (US$ 8.5 billion) at the end of last year, to 8,500 billion Won (US$ 7.7 billion) so far this year, and has plans to further reduce it to 7,700 billion Won (US$ 7 billion) by the end of this year. With its advanced management system and digital corporate culture, Hyundai endeavors to become “the best company to work for, the best company to invest in, and the best company to do business with.”

The post Hyundai Electronics Celebrates First Anniversary of Semiconductor Merger first appeared on SK hynix Newsroom.

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The Semiconductor Group of Hyundai Electronics Industries held its Better than the Best (BttB) festival, a celebration of the first anniversary of its merger with LG Semicon. Running from August 19 to 30, the BttB festival was the first integrated event for all units of the Semiconductor Group in Ichon, Chungju, and Gumi since last year”s merger. All employees of Semiconductor Group participated in the festival, thereby strengthening the relationships between the various business units and production lines. The 12-day festival consisted of various team-building events such as joint picture painting, a match-making party, a photo contest, and more. Mr. Sang Ho Park, President of the Semiconductor Group, participated in the dance contest and added to the fun by arm wrestling with some of the employees. The festival events were held by each business unit in Seoul, Ichon, Chungju, and Gumi and were organized under the following themes: BttB, To Be One BttB, Me First Challenge! BttB The slogan of Better than the Best represents Hyundai”s strong intent to become the leading supplier in the semiconductor industry by 2002, as a result of leveraging the synergistic effects of the merger. The purpose of the BttB festival was to integrate the different cultures of each business unit and promote a sense of unification under the goal of becoming better than the best.”

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