At CES 2022, SK Telecom, SK Square and SK hynix announced the launch of the ‘SK ICT Alliance’ to jointly develop and invest in ICT convergence technologies, and create global market opportunities.

The alliance comes as SK hynix celebrates the tenth year since joining the SK Group and SK Square successfully spun off from SK Telecom, marking the beginning of a new era of synergies between semiconductor, telecommunication and investment.

With the aim to secure global competitiveness in diverse ICT areas such as semiconductors, 5G and AI, the three companies plan to carry out joint business activities in the global market by leveraging SK Square’s innovative investment, SK Telecom’s AI and 5G technologies and SK hynix’s future semiconductor technologies.

From January 2022, the three companies will operate ‘Synergy Council’ chaired by Vice Chairman Park Jung-ho, and joined by Ryu Young-sang, CEO of SK Telecom, and Lee Seok-Hee, CEO of SK hynix. The Synergy Council will be the highest decision making body, where the executives discuss R&D cooperation and joint investments in semiconductor and ICT areas, and promote global market expansion.

Increasing the presence of SK Telecom’s self-developed AI semiconductor SAPEON

SK Telecom, SK Square and SK hynix will first create synergies in introducing SK Telecom’s AI chip SAPEON* to the global market. The three companies will jointly invest to establish SAPEON Inc. in the U.S. and make inroads into the global AI semiconductor market.

* SAPEON is SK Telecom’s self-developed AI chip launched in November 2020. Although it is about half the price of a Graphics Processing Unit (GPU), its deep learning computation speed is 1.5 times faster and it uses 20% less power than GPU.

SK Telecom plans to lead the development of SAPEON-related technologies by leveraging its R&D capabilities and service experience accumulated in 5G and AI. In the mid-to long-term, the company will expand its SAPEON model lineup by developing AI chips dedicated to data centers and autonomous driving.

SK Telecom will also promote synergies between its AI semiconductor and SK hynix’s semiconductor memory technologies, while also attracting strategic and financial investors in cooperation with SK Square.

SAPEON Inc. will serve as an outpost for expanding the AI semiconductor business to the global market by attracting U.S.-based big tech companies as major clients. It will also secure an edge in luring semiconductor development experts and drawing in outside investors. Moreover, as the subsidiary of SAPEON Inc., SAPEON Korea will take charge of business in Korea and the Asian region.

Projecting that the convergence of AI and metaverse will define the future world of ICT, SK Telecom plans to innovate its three key services, T Universe, Ifland and AI Agent, in an accelerated manner. Moreover, it will also introduce new services by adding connected intelligence to future devices such as UAM aircrafts, self-driving cars and robots.

“By proactively responding to changes taking place in the areas of AI, metaverse and 5G, we will prepare ourselves for the next decade,” said Ryu Young-sang, CEO of SK Telecom.

Creating an ICT investment capital of over KRW 1 trillion

SK Telecom, SK Square and SK hynix plan to establish a base to make investments overseas this year and attract investment from overseas financial investors to create and operate a total investment capital of over KRW 1 trillion. Detailed discussions on investments are already underway with prominent global investors.

With this investment capital, the three companies will actively invest in companies with innovative technologies such as AI, metaverse, block chain and semiconductors.

Through these investment activities, they will be able to stay ahead of the convergence trend within the ICT industry and discover unicorns that can change the industrial landscape, which will lead to valuable business synergies.

SK Telecom and SK hynix will be able to strengthen business partnerships with the companies they invested in or even secure an advantage in the acquisition of these companies in the future. SK Square expects to build a good track record as an investment company, while increasing its corporate value.

According to market research company Mergermarket, the size of the global buyout market reached around KRW 1,400 trillion (USD 1.172 trillion) in 2021, increasing by about twofold from the previous year. Industries are being rapidly reorganized via M&As between global companies, and those that fail to keep up with this trend are left behind the competition.

SK hynix to increase its global market presence through ‘Inside America’ strategy

SK hynix aims to become a top global tech company that leads the rapidly changing ICT industry.

Recently, the semiconductor market is witnessing more diversified demand from sectors like AI, autonomous driving and metaverse, and pluralization is taking place within the system architecture field like CPU, GPU and MPU. Since the existing law of competition no longer applies to this market, it is imperative for companies to develop new business models and technologies to remain competitive.

With the acquisition of Intel’s NAND and SSD business, SK hynix is now fully set to strengthen the competitiveness of its NAND flash business. The company also aims to break away from its existing role as a semiconductor supplier and become a company that leads future technologies along with global ICT companies.

Moreover, SK hynix will carry out its ‘Inside America’ strategy in the U.S., world’s largest ICT market and battlefield, to enhance its business competitiveness and expand into new partnerships. It will also establish a new business unit and R&D center in the U.S. Based on SK hynix’s competitiveness, the three companies expect to strengthen their collaboration with global ICT companies.

“SK hynix will take a leap to become a top-notch global tech company by offering more innovative technologies and products, and creating value for the society and humanity,” said Lee Seok-Hee, CEO of SK hynix.

Meanwhile, SK Square plans to accelerate the creation of synergies among the three companies by making innovative investments. In response to SK hynix’s moves towards global market expansion and new technology development, SK Square will make joint investments in the semiconductor ecosystem. In parallel, it will increase its investment in platforms that will drive future innovations such as metaverse and blockchain.

SK Square will also enter the new global block chain market by leveraging Korbit, a virtual asset exchange it recently invested in, and build a blockchain-based economic system in collaboration with SK Telecom’s metaverse platform Ifland.

“This year, the SK ICT Alliance will join forces to achieve new innovations and make a big leap forward in the global market,” said Park Jung-ho, Vice Chairman and CEO of SK Square and SK hynix. “As leading players in the global semiconductor and ICT industries, we will also make best efforts to contribute to the Korean economy.”

About SK Telecom

SK Telecom (NYSE:SKM) is Korea’s leading ICT company, driving innovations in fixed & wireless telecommunications, AI service, and digital infrastructure service. Armed with cutting-edge ICT including AI and 5G, the company is ushering in a new level of convergence to deliver unprecedented value to customers. As the global 5G pioneer, SKT is committed to realizing the full potential of 5G through ground-breaking services that can improve people’s lives, transform businesses, and lead to a better society.

SKT boasts unrivaled leadership in the Korean mobile market with over 30 million subscribers, which account for nearly 50 percent of the market.

For more information, please contact skt_press@sk.com or visit our LinkedIn page www.linkedin.com/company/sk-telecom.

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), Flash memory chips (“NAND Flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxembourg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

Media Contact

Irene Kim
SK Telecom Co., Ltd.
Manager
+82 2 6100 3867
gahaekim@sk.com

Ian Kim
SK Square
Project Leader
+82 2 6100 7088
yjoon.kim@sk.com

Jaehwan Kevin Kim, Kanga Kong
SK hynix
Technical Leader
global_newsroom@skhynix.com

The post SK Telecom, SK Square and SK hynix Launch ‘SK ICT Alliance’ for Synergies first appeared on SK hynix Newsroom.

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With every new year comes a fresh sense of optimism about the future, a moment to focus on what’s to come, instead of what we’re leaving behind. And so, it’s fitting that the annual Consumer Electronics Show would take place in early January to provide the world with a preview of the products, services and technologies that will impact our lives in the year – and years – ahead.

Back in-person at the Las Vegas Convention Center after a Covid-prompted virtual-only show last year, CES remains a one-of-a-kind, a spotlight show where devices have long grabbed the headlines. The event, starting January 5 in strict compliance of the federal and local health authorities’ guidelines, is taking place in a relatively calmer mood, but still attracting visitors eager to learn the new technology trend.

It’s important to remember, however, that the “E” in CES stands for Electronics and that none of these attention-grabbing devices would be what they are without the various internal components – from Bluetooth chips to advanced semiconductor memory – powering them.

In keeping with the spirit of looking into the future with optimism, SK hynix will use its show floor space at CES to promote a different type of optimism for the future, one that impacts everyone – the environmental impact.

For as much attention that the devices themselves receive about battery life, heat generation and other concerns, carbon reduction efforts begin at the heart of those devices, within the internal components.

As a semiconductor company, SK hynix, along with five other group affiliates participating in the exhibition, shoulders an important part of SK Group’s larger carbon reduction effort and will be showcasing examples of its impact on three distinct areas: the product, the process, and the package.

The Product: Low-Powered Semiconductors

It’s widely recognized that general solid-state drives, or SSDs, consume 60% less power than hard-disk drives, or HDDs. If we can replace existing 4th generation NAND Flash-based enterprise SSDs (eSSDs) in the data centers around the world with 5th generation eSSDs, carbon dioxide emissions could be reduced by 50,000 tons a year in 2030.

SK hynix’s world’s best-performing DRAM, High Bandwidth Memory 3 (HBM3), is also expected to contribute to SK hynix’s efforts to reduce carbon dioxide emissions. HBM3, which is used for AI Accelerators and high-performance graphics cards, has improved power consumption over existing GDDR DRAM by about 50 percent. Replacing GDDR DRAM with HBM3 also will contribute to the reduction of CO2 emissions by about 830,000 tons a year in 2030.

By accelerating the transition of the storages into SSDs and developing the next-gen semiconductor memory solutions, SK hynix can help contribute to the reduction of carbon dioxide emissions, which is one of the important goals for SK Group.

The Process: Water-free scrubber

One of the best examples of SK hynix’s sustainable movement is the adoption of the highly efficient ‘Water-Free Scrubber’ at process plants to better manage water resources.

SK hynix’s dedication to the safe disposal of various chemicals used in semiconductor processing is proven through its development and adoption of eco-friendly process technology. For this, the eco-friendly scrubber technology was developed for the treatment of process gas. The eco-friendly scrubbers led to a reduction of greenhouse gas emissions by approximately 90 percent a year in 2020. Furthermore, SK hynix developed new water-free scrubbers with its partner companies. Compared to the existing scrubbers, these water-free scrubbers can eliminate process gas without using any water resources, and by so further reduce water resource consumption.

The Package: Biodegradable package material

The commitment to the environment doesn’t end when the products are manufactured. Even the packaging that our SSDs are shipped in take the environment into consideration.

Last year, when the company announced its Gold P31 SSD, it noted packaging that utilized biodegradable plastic bags, soy ink and Forest Stewardship Council (FSC)-certified paper. This eco-friendly package can be degraded by 90% in 180 days, and the certification indicated that the wood fiber was harvested in ways that reduce environmental impact by protecting water quality, avoiding hazardous chemicals, and protecting forest ecology and wildlife habitats.

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SK’s Pursuit of Eco-Friendly Semiconductor Ecosystem

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Processing a copious amount of data we use every day generates a lot of heat and carbon. In the process of semiconductor production, we are also striving with our business partners to create a sustainable semiconductor ecosystem by establishing the Eco Alliance, which is concerned with minimizing carbon emissions and solving environmental problems.

In 2019, SK hynix created the ECO Alliance, a coalition of nearly 40 partner companies committed to building an eco-friendly semiconductor ecosystem. Each member company of alliance is held accountable to mid-to long-term environmental goals that will reduce the impact of their company on the environment. SK hynix is working with partners to maximize energy efficiency in the manufacturing process by recovering waste heat and operating the refrigeration system in optimal condition.

THE SK FAMILY EFFORT

When it comes to carbon reduction, the work being done through SK hynix are part of a larger effort among SK Group’s many companies. The Group is determined to contribute to the global carbon reduction targets of 21 billion tons by 2030 by taking on one percent of that, or 200 million tons.

The work is part of SK Group’s larger philosophy and belief that social values are just as important as economic values. It’s an important message that will resonate as many of us venture out again for the first time since Covid changed our lives. For some, it will be the first time back on an airplane or sleeping in a hotel room. For others, it may be the first time being back among large groups of people.

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But to be back after last year’s hiatus, to see some cutting-edge technologies and be able to understand that the future is more than what we do, but also how we go about doing it. It’s an exciting time to be back.

Safe travels to one and all heading to and from Las Vegas. Stay healthy.

The post Back to CES: SK hynix Focuses on Ways Technology Can Impact Carbon Reduction Efforts first appeared on SK hynix Newsroom.