Global semiconductor demand experienced a remarkable resurgence in 2024, driven by a wave of AI-powered innovation. In response, fabs cranked up production to deliver chips that could handle the immense computing needs of next-generation technologies.

Amid this whirlwind of progress, SK hynix stood out as a market leader. Throughout the year, the company not only overcame challenges but also played a crucial role shaping the future of the semiconductor industry. This article revisits SK hynix’s eight biggest stories of the year with insights from executives, highlighting the company’s progress in AI memory, business investments, sustainability, and more.

1. Investment Milestone: Advanced Chip Packaging Plant Deal in Indiana for Next-Gen AI Memory

SK hynix announced in April that it will invest USD 3.87 billion to establish an advanced packaging facility in Indiana, U.S. The plant will house a leading production line to mass-produce next-generation HBM¹ as well as future generations of chips. Once completed, the project is set to strengthen the U.S. semiconductor supply chain and address the global surge in demand for AI memory products.

¹High Bandwidth Memory (HBM): A high-value, high-performance memory that vertically interconnects multiple DRAM chips using through-silicon via (TSV).

In August, momentum for the project intensified when SK hynix signed a memorandum of terms with the U.S. Department of Commerce, securing access to significant funding and other financial incentives. This initiative underscores the company’s commitment to establishing a new hub for AI technology.

“We are excited to become the first in the industry to build a state-of-the-art advanced packaging facility for AI products in the U.S. This plant will help strengthen supply-chain resilience and advance our goal of providing AI memory chips with unmatched capabilities,” stated CEO Kwak Noh-Jung.

Learn more about the Indiana investment →

2. Pushing Boundaries: Mass Production of the World’s First 12-Layer HBM3E

Since launching the world’s first HBM in 2013, SK hynix has consistently pushed the boundaries of memory performance with each new iteration. In September 2024, SK hynix marked another milestone in its HBM journey as it began mass production of the world’s first 12-layer HBM3E. Boasting the highest capacity of any existing HBM—36 GB—along with industry-leading speed, the 12-layer HBM3E is optimized to meet the growing demands of AI applications.

Commenting on the announcement which became the most-viewed story on the newsroom in 2024, President Justin Kim, head of AI Infra, emphasized the importance of the breakthrough.

“SK hynix has once again broken through technological limits, demonstrating our industry leadership in AI memory. We will continue our position as the No.1 global AI memory provider as we steadily prepare next-generation memory products to overcome the challenges of the AI era,” he said.

Building on this momentum, the company is now developing the 16-layer HBM3E, promising even greater bandwidth and paving the way for further AI advancements.

Read more about the 12-layer HBM3E →

3. Empowering Growth: Yongin Semiconductor Cluster Investment Plan

The Yongin Semiconductor Cluster is poised to become a cornerstone of SK hynix’s long-term growth, as it looks to meet increasing demand for AI memory. In July, the company committed approximately KRW 9.4 trillion (USD 6.7 billion) to the construction of the project’s first fab and business facilities. In total, SK hynix will construct four fabs for next-generation semiconductors and a semiconductor cooperation complex at the site, which will ultimately serve as a global AI semiconductor production base.

Vice President Kim Young-sik, head of Manufacturing Technology, emphasized the cluster’s vital role in the company’s future.

“The Yongin Cluster will be the foundation for SK hynix’s mid- to long-term growth and a place for innovation, while dramatically enhancing South Korea’s semiconductor technology and ecosystem competitiveness,” he said.

The first fab will focus on producing advanced DRAM, including HBM, with an additional “mini-fab²” planned to support small local businesses’ technological development.

²Mini-fab: Research facility equipped with 300mm wafer processing equipment to demonstrate semiconductor materials, parts, and equipment.

Explore the Yongin Semiconductor Cluster plans →

4. Strengthening SSD Portfolio: Developing PEB110 for Data Centers

In September, SK hynix enhanced its SSD portfolio with the development of a high-performance SSD for data centers, PEB110. This groundbreaking SSD builds on the company’s 238-layer 4D NAND technology, offering twice the performance and over 30% greater power efficiency than the previous generation. As demand for cutting-edge SSD solutions accelerates in AI and big data applications, PEB110 is designed to meet the needs of large-scale cloud computing and data centers.

“Looking ahead, we are on track to proceed with customer qualification and volume production to solidify our position as the No. 1 global AI memory provider in the ever-growing SSD market for data centers,” Ahn Hyun, head of the N-S Committee, noted.

Following the company’s success with ultra-fast DRAM products, the announcement solidifies its position as a leader in NAND solutions.

Discover more details about the PEB110 →

5. Revolutionizing Storage: Mass Production of the Industry’s First 321-layer NAND

Continuing its track record of innovation, SK hynix announced in November it had begun mass- producing the world’s first 321-layer 4D NAND flash. The achievement, which marks the first time a company produced a NAND flash solution with more than 300 layers, follows SK hynix’s significant breakthrough in stacking technology. Delivering enhanced speed and power efficiency compared to the previous generation, the 321-layer NAND flash meets the growing demands of AI applications.

The accomplishment strengthens the company’s position in the AI storage market, particularly in SSDs for AI data centers and on-device AI applications.

“SK hynix is on track for continued growth by adding a perfect portfolio in the ultra-high performance NAND space on top of the DRAM business led by HBM,” said Vice President Jungdal Choi, head of NAND Development.

Find out more information about the 321-layer NAND →

6. Sustainable Success: Winning the IFR Asia Award for Innovative Bond

SK hynix picked up a prestigious IFR Asia Award in April, winning the Best ESG Bond prize for its innovative USD 2.5 billion triple-tranche combination trade. Featuring a sustainability-linked note that targets a reduction in greenhouse gas emissions and a green bond that funds environmental projects, the triple-tranche bond supports the company’s efforts to reach its sustainability goals.

“The green bond, in particular, funds environmental innovations such as increased product energy efficiency, improved wastewater management, and pollution reduction,” said Hyungmo Yang, head of Financial Management. “Going forward, the bond’s proceeds will continue to help us meet our environmental goals.”

By integrating sustainability into its financial practices, SK hynix is addressing the rising demand for investments that deliver both economic returns and environmental benefits.

Read more on SK hynix’s win →

7. Enhancing Shareholder Value: 25% Dividend Hike in New Return Program

In November, SK hynix demonstrated its commitment to delivering value to shareholders by announcing a 25% increase in the annual fixed dividend—the minimum dividend per share that the company plans to pay out every year. The increase, which takes the dividend up to KRW 1,500 (USD 1.06) a share from KRW 1,200, is part of a new shareholder return program for the 2025–27 period.

The enhanced program aims to meet the expectations of shareholders who have supported the company on its path to becoming the global leading AI memory provider.

“Our goal is to promote the company’s long-term prosperity together with our shareholders by carrying out the policies for shareholder return that matches the company’s growth and stability of the financial structure,” Vice President and Chief Financial Officer Kim Woohyun commented.

Separately, the company also unveiled an initiative aimed at increasing corporate value by enabling quick decision-making in response to market changes.

Learn more about the shareholder return program →

8. Commitment to ESG: Unveiling the Recycled Materials Roadmap

As part of its ongoing commitment to ESG, SK hynix introduced a bold roadmap in February to increase the proportion of recycled and renewable materials in semiconductor production. Through this industry-first mid- to long-term plan, the company will first target replacing essential metals for semiconductors with recycled materials before focusing on recycled plastics.

“As a company that takes ESG management seriously, we intend to actively participate in the establishment of a global circular economy,” said Vice President Junho Song, head of Advanced Quality & Analysis. “While implementing this roadmap, we will work together with all stakeholders in the semiconductor supply chain, including customers and suppliers, to achieve practical results.”

This forward-looking roadmap not only highlights SK hynix’s recent success in sustainable innovation but also reinforces its vision for the future. As the company leads the charge in integrating sustainability with technological advancement, it sets a compelling example of how the semiconductor industry can shape a greener, more resilient future.

See the full sustainable materials roadmap →

Continuing the Journey of Excellence in 2025

In 2024, SK hynix achieved new heights through technological breakthroughs, strategic investments, and sustainable innovation. These accomplishments not only solidified the company’s leadership in AI memory but also positioned it at the forefront of emerging fields. Looking ahead to 2025, SK hynix is set to continue its journey of excellence, shaping the next generation of cutting-edge technology and powering the innovations of tomorrow as a full stack AI memory provider.

The post Executive Insights on SK hynix’s Top 8 Stories of 2024 first appeared on SK hynix Newsroom.

SK hynix Inc. (or “the company”, www.skhynix.com) announced today it has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to receive up to $450 million in proposed direct funding and access to proposed loans of $500 million as part of the CHIPS and Science Act for its investment to build a production base for semiconductor packaging in Indiana. Separately, SK hynix plans to seek from the U.S. Department of the Treasury a tax benefit equivalent of up to 25% of the qualified capital expenditures through the Investment Tax Credit program.

SK hynix said it deeply appreciates the U.S. government’s support and will comply with the requirements for the remaining procedures until the proposed funding is finalized.

The company also said that it will proceed with the construction of the Indiana production base as planned to meet the plan to provide AI memory products. Through this, it looks forward to contributing to build a more resilient supply chain of the global semiconductor industry.

The signing follows SK hynix’s announcement in April that it plans to invest $3.87 billion to build a production base for advanced packaging in Indiana in a move expected to create around 1,000 jobs. The company also said that it would collaborate with local research institutions, including Purdue University for research and development of semiconductors.

“We deeply appreciate the U.S. Department of Commerce’s support and are excited to collaborate in seeing this transformational project fully realized,” said SK hynix CEO Kwak Noh-Jung. “We are moving forward with the construction of the Indiana production base, working with the State of Indiana, Purdue University and our U.S. business partners to ultimately supply leading-edge AI memory products from West Lafayette. We look forward to establishing a new hub for AI technology, creating skilled jobs for Indiana and helping build a more robust, resilient supply chain for the global semiconductor industry.”

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

SK hynix Inc.
Global Public Relations

Technical Leader
Kanga Kong
E-Mail: global_newsroom@skhynix.com

Technical Leader
Sooyeon Lee
E-Mail: global_newsroom@skhynix.com

The post SK hynix Signs Preliminary Memorandum of Terms with U.S. Department of Commerce for Advanced Packaging Facility in Indiana first appeared on SK hynix Newsroom.

• Company confirms investment for the construction of auxiliary facilities necessary for the initial operation of Yongin 1st Fab and the Cluster
• Yongin Cluster expected to increase the competitiveness of the Korean semiconductor industry and contribute to revitalizing the economy

Seoul, July 26, 2024

SK hynix Inc. (or “the company”, www.skhynix.com) announced today that it has decided to invest about 9.4 trillion won in building the first fab and business facilities of the Yongin Semiconductor Cluster after the board resolution on the 26th.

SK hynix designs to start construction of the 1st fab to be built in the Yongin cluster in March next year and complete it in May 2027, and have received an investment approval from the board of directors prior to it. The company will make every effort to build the fab to lay the foundation for the company’s future growth and respond to the rapidly increasing demand for AI memory semiconductors.

The Yongin Cluster, which will be built on a 4.15 million square meter site in Wonsam-myeon, Yongin, Gyeonggi Province, is currently under site preparation and infrastructure construction. SK hynix has decided to build four state-of-the-art fabs that will produce next-generation semiconductors, and a semiconductor cooperation complex with more than 50 small local companies.

After the construction of the 1st fab, the company aims to complete the remaining three fabs sequentially to grow the Yongin Cluster into a “Global AI semiconductor production base.”

The amount of investment approved this time included various construction costs necessary for the initial operation of the cluster, including auxiliary facilities¹, business support buildings, and welfare facilities along with the 1st fab. The investment period was planned to be from August 2024 to the end of 2028, considering the design period to prepare for fab construction and the business support building scheduled to be completed in the second half of 2028.

¹Auxiliary facilities: Water treatment facilities, communal areas (facilities that can jointly accommodate underground facilities such as wires, communication lines, water supply and sewage pipes, heat transfer pipes), substation facilities, warehouses, etc.

The company will produce next-generation DRAMs, including HBM, a representative AI memory, at the 1st fab prepare for production of other products in line with market demand at the time of completion.

In addition, SK hynix plans to build a “Mini-fab²” within the first phase to help small businesses develop, demonstrate and evaluate technologies. Through the Mini-fab, the company will provide small business partners with an environment similar to the actual production site so that they can improve the technological perfection as much as possible.

²Mini-fab: Research facility equipped with 300mm wafer processing equipment to demonstrate semiconductor materials, parts, and equipment

“The Yongin Cluster will be the foundation for SK hynix’s mid- to long-term growth and a place for innovation and co-prosperity that we are creating with our partners,” said Vice President Kim Young-sik, Head of Manufacturing Technology at SK hynix. “We want to contribute to revitalizing the national economy by successfully completing the large-scale industrial complex and dramatically enhancing Korea’s semiconductor technology and ecosystem competitiveness.”

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

SK hynix Inc.
Global Public Relations

Technical Leader
Sooyeon Lee
E-Mail: global_newsroom@skhynix.com

Technical Leader
Kanga Kong
E-Mail: global_newsroom@skhynix.com

The post SK hynix Board Approves Yongin Semiconductor Cluster Investment Plan first appeared on SK hynix Newsroom.

• To build advanced packaging facility for next-generation HBM, while collaborating with Purdue University for R&D
• Selects Indiana for strong support provided by the state and local government, infrastructure for manufacturing, and talent at Purdue
• Industry’s first investment in advanced packaging for AI products on American soil, strengthens supply-chain resilience

West Lafayette, Indiana, April 3, 2024

SK hynix Inc. (or “the company”, www.skhynix.com), the world’s leading producer of High-Bandwidth Memory (HBM)¹ chips, announced today that it will invest an estimated $3.87 billion in West Lafayette, Indiana to build an advanced packaging fabrication and R&D facility for AI products. The project, the first of its kind in the United States, is expected to drive innovation in the nation’s AI supply chain, while bringing more than a thousand new jobs to the region.

¹HBM (High Bandwidth Memory): A high-value, high-performance memory that vertically interconnects multiple DRAM chips and dramatically increases data processing speed in comparison with conventional DRAM products. HBM4 is the sixth generation of its kind, following HBM, HBM2, HBM2E, HBM3 and HBM3E.

The company held an investment agreement ceremony with officials from Indiana State, Purdue University, and the U.S. government at Purdue University in West Lafayette on the 3^rd and officially announced the plan.

At the event, officials from each party including Governor of Indiana Eric Holcomb, Senator Todd Young, Director of the White House Office of Science and Technology Policy Arati Prabhakar, Assistant Secretary of Commerce Arun Venkataraman, Secretary of Commerce State of Indiana David Rosenberg, Purdue University President Mung Chiang, Chairman of Purdue Research Foundation Mitch Daniels, Mayor of city of West Lafayette Erin Easter, Ambassador of the Republic of Korea to the United States Hyundong Cho, Consul General of the Republic of Korea in Chicago Junghan Kim, SK vice chairman Jeong Joon Yu, SK hynix CEO Kwak Noh-Jung and SK hynix Head of Package & Test Choi Woojin, participated.

Leveraging its dominant position in the HBM market, SK hynix’s new facility will be home to an advanced semiconductor production line that will mass-produce next-generation HBM, the highest-performing Dynamic Random Access Memory (DRAM) chips, which are the critical components of graphic processing units that train AI systems such as ChatGPT.

The company plans to begin mass production in the second half of 2028, while the new facility will also develop future generations of chips and house an advanced packaging R&D line. The site was selected due to Indiana’s resilient manufacturing infrastructure and R&D ecosystem, expert intellectuals in the semiconductor field and the talent pipeline at Purdue University, and the strong support provided by the state and local government.

Innovation in memory chips continues to drive lower-power operations and performance enhancements in computing. As tech shrinkage and other hardware improvements have hit limits, SK hynix’s new chiplet packaging technology has emerged as a promising way to continue enhancing density and performance. As this heterogeneous integration technology becomes more and more important to the future of the semiconductor industry, the company’s new initiative in Indiana will help establish the region as a Silicon Heartland: a new semiconductor cluster centered in the Midwest Triangle that will become a magnet for next-generation computing in the AI era.

“Indiana is a global leader in innovating and producing the products that will power our future economy, and today’s news is proof positive to that fact,” said Governor Eric Holcomb. “I’m so proud to officially welcome SK hynix to Indiana, and we’re confident this new partnership will enhance the Lafayette-West Lafayette region, Purdue University and the state of Indiana for the long term. This new semiconductor innovation and packaging plant not only reaffirms the state’s role in the hard tech sector, but is also another tremendous step forward in advancing U.S. innovation and national security, putting Hoosiers at the forefront of national and global advancements.”

U.S. Senator Todd Young, a key advocate for the project, said, “SK hynix will soon be a household name in Indiana. This incredible investment demonstrates their confidence in Hoosier workers, and I’m excited to welcome them to our state.” Adding, “The CHIPS and Science Act opened a door that Indiana has been able to sprint through, and companies like SK hynix are helping to build our high-tech future.”

“SK hynix is the global pioneer and dominant market leader in memory chips for AI,” Purdue University President Mung Chiang said. “This transformational investment reflects our state and university’s tremendous strength in semiconductors, hardware AI, and hard tech corridor. It is also a monumental moment for completing the supply chain of digital economy in our country through chips advanced packaging. Located at Purdue Research Park, the largest facility of its kind at a U.S. university will grow and succeed through innovation.”

“We are excited to become the first in the industry to build a state-of-the-art advanced packaging facility for AI products in the United States that will help strengthen supply-chain resilience and develop a local semiconductor ecosystem,” said SK hynix CEO Kwak Noh-Jung. “With this new facility, we hope to advance our goal of providing AI memory chips with unmatched capabilities, serving the needs of our customers.”

“We are grateful for the support from the Government of Indiana, Purdue University, and the broader community involved, and we look forward to expanding our partnership in the long run.”

As a technology leader, integrator, and enabler in memory solutions, SK hynix is collaborating with Purdue University, one of the leading research institutions in the U.S., on plans for future R&D projects. These projects include work on advanced packaging and heterogeneous integration with Purdue’s Birck Nanotechnology Center and other research institutes and industry partners. They also hope to collaborate on a project related to memory-centric solutions and architecture for the generative AI era, specifically system-level memory design and in/near-memory computing.

The company also plans to collaborate with Purdue University and Ivy Tech Community College to develop training programs and interdisciplinary degree curricula that will cultivate a high-tech workforce and build a reliable pipeline of new talent.

Meanwhile, SK hynix plans to support the work of Purdue Research Foundation and other local non-profits and charities by building partnerships that provide community development, growth opportunities, and leadership training.

Separately, SK hynix will also proceed with Korean domestic investments as planned. The company has been working to prepare the site for the Yongin Semiconductor Cluster where it will invest 120 trillion won to build production facilities. The company plans to break ground on the first fab in March of 2025, with plans for completion in early 2027. It will also build a mini fab, a facility with equipment for 300mm wafer processing, to test semiconductor materials, components and equipment.

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

SK hynix Inc.
Global Public Relations

Technical Leader
Kanga Kong
E-Mail: global_newsroom@skhynix.com

Technical Leader
Sooyeon Lee
E-Mail: global_newsroom@skhynix.com

The post SK hynix Signs Investment Agreement of Advanced Chip Packaging with Indiana first appeared on SK hynix Newsroom.

Yongin General Industrial Complex Inc., a special purpose company (SPC) created to build a site for a semiconductor cluster, announced on February 21st that it had submitted an Investment Letter of Intent (LOI) to the Yongin City Government on February 20th. The SPC asked for a site of about 4.48 million square meters. SK hynix Inc. (or ‘the Company’, www.skhynix.com) and more than fifty of its domestic and foreign partner companies will join the semiconductor cluster project.

Once the site is approved, the Company plans to invest 120 trillion won ($105.6 billion) to build four semiconductor fabrication plants after 2022, when the site formation is expected to be completed, at the new cluster site in Yongin. More than 50 foreign and domestic equipment/material/parts partner suppliers will also move to the new cluster, generating synergies to strengthen Korea’s semiconductor ecosystem.

About 85% of the 244 members of the Korea Semiconductor Industry Association are located in the Seoul metropolitan area. Therefore, if new cluster is built in Yongin, companies will be able to systemically cooperate in real time. Joint R&D between the chip maker and the equipment/material/parts companies, performance analysis, and equipment setup and maintenance are essential in the semiconductor industry during the entire technology development and production process.

SK hynix will provide a financial support of 1.22 trillion won for ten years in an effort to reinforce the semiconductor industry. The Company will spend 300 billion won to create a “mutual growth fund,” 638 billion won to establish an AI-based center for mutual growth and cooperation, and 280 billion for joint R&D projects.

SK hynix will continue to make investments over the next decade in its two existing campuses in Icheon, Gyeonggi Province, and Cheongju, Chungcheong Province. For Icheon, the Company will invest 20 trillion won in the new plant, M16, and a new R&D building. The Company will invest 35 trillion won in Cheongju, including the expansion of the production capacity of M15, which has been in operation since last year.

SK hynix intends to establish a triangular axis—Icheon the headquarters and a base for R&D and DRAM fabrication, Cheongju a base for NAND fabrication, and Yongin a base for DRAM and next-generation memory chips as well as for mutual growth in the industry—to pursue mid- and long-term growth.

Media Contact

SK hynix Inc.
Global Public Relations

Technical Leader (Assistant Manager)
Hyun Kyung Olivia Lee
Phone: +82.31.8093.4771
E-Mail: hyunkyung14.lee@sk.com

Technical Leader (Senior Manager)
Eun Suk Yixi Lee
Phone: +82.31.8093.4790
E-Mail: eunsuk8.lee@sk.com

The post A Special Purpose Company Submits an Investment Letter of Intent for a Semiconductor Cluster to Yongin first appeared on SK hynix Newsroom.

hynix Semiconductor Manufacturing America (“HSMA”), the U.S. subsidiary of hynix Semiconductor Inc. of Korea, announced today that it is launching a $100 million upgrade to its DRAM fabrication facility in Eugene, Oregon.

“We at HSMA are proud that our parent company has committed to keeping the Eugene facility at the cutting edge of semiconductor manufacturing technology,” Jerold Olson, a hynix spokesperson stated. “This upgrade will assure that our Oregon facility continues to compete at the highest levels of the global semiconductor market. It sends a strong message about hynix’s confidence in the future of the industry and the company.”

hynix has invested over $1.6 billion to date in the Eugene, Oregon facility, which manufactures 256 SDRAM and DDR. These semiconductors are used in a wide variety of products. HSMA employs over 850 individuals at the Eugene facility, along with 170 contract workers. HSMA is one of the top private employers in Oregon. “We at HSMA are sensitive to the fact that when we take into account the direct and indirect employment effects of our operations, we are responsible for the jobs of literally thousands of Oregonians,” Mr. Olson continued. “At a time of economic uncertainty, secure, well-paid jobs are the greatest benefit we can bring to Eugene, Oregon, and America. In turn, our employees and their communities have been responsible for the great success of our U.S. operations. This is truly a ‘win-win’ investment. HSMA and hynix are doing our utmost to continue this success story long into the future, and we appreciate the continuing support we have received from our elected officials. hynix and HSMA are proud to be building a better future for our company and our employees in Oregon.”

Unlike previous upgrades to the Eugene, Oregon facility, production will continue at the site and will not affect current employees and operations. According to Farhad Tabrizi, Vice President of Worldwide Marketing, the result of the upgrade to “PrimeChip” technology will result in a production increase of more than 50%. “We anticipate a smooth transition in the adoption of .13 micron technology which will provide HSMA with optimum technology to continue to effectively supply 256M DRAMs to the market. We expect the new HSMA product will primarily serve our U.S. customer base for use in high end applications specially in the server market.

The post hynix Semiconductor Manufacturing America Announces $100 mil. Investment to Upgrade Eugene, Oregon Facility first appeared on SK hynix Newsroom.

With respect to the public announcement by Hyundai Heavy Industry Co., Ltd. (“HHI”) relating to its purchase of 13,000,000 shares (“Shares”) of Hyundai Investment Trust Co., Ltd. (“HITC”) from Canadian Imperial Bank of Commerce (“CIBC”), we would like to clarify the factual background and history of our original sale of the Shares to CIBC in order to eliminate any misunderstandings about this situation. Our sale of the Shares to CIBC was a straight-forward sale-and-purchase transaction. In March 1997, we acquired 52.56% of HITC’s issued shares as part of Hyundai Group’s acquisition of HITC. Because we were then subject to investment limitations under the Monopoly Regulation and Fair Trade Act and also because we believed that our equity ownership in HITC was too high, we decided to sell part of our holding in HITC to CIBC. At that time, even though CIBC expected huge capital gains from the Shares once HITC’s operations were stabilized, it nonetheless demanded a put option as an assurance to cover its down-side risk. We had no intention, however, to repurchase the Shares, and further, it was impossible to accept the put option due to Korean regulatory restrictions. Accordingly, on June 4th, 1997, CIBC and we executed a share purchase agreement for the Shares that did not provide for a put option. Thereafter, CIBC negotiated with HHI and executed a share option agreement on July 23, 1997 pursuant to which HHI granted a put option to CIBC for the Shares. In our understanding, HHI expected the operations of HITC to stabilize shortly, and thus, it believed that the possibility of CIBC’s exercising the put option was remote. Further, HHI became the counter party to the put option because the Hyundai Group tried to spread ownership of HITC among several Hyundai Group companies, in the event that the option should be exercised. At that time, we and Hyundai Securities Co., Ltd. (“HSC”) submitted a letter of undertaking to HHI to the effect that we and HSC would cause HHI not to be burdened with the obligation of the put option. Since we attained certain capital gains from the sale of the Shares to CIBC, as a matter of fairness, we agreed to share part of any loss that HHI might incur from the put option. In addition, we also had certain assurances from other parties that any such loss shared by us would be recompensated. In light of the foregoing, it cannot be said that our sale of the Shares to CIBC is a type of financing transaction and HHI’s provision of the put option is a type of payment guarantee for the transaction, as alleged by HHI. Our legal counsel is currently reviewing and analyzing our potential liabilities, if any, and the countermeasures available to us, in this matter. We will decide our detailed action plan based on the result of our legal counsel’s analysis, and we will make every effort to protect the interests of our shareholders by exhausting all the options available to us, while we will try to resolve this matter amicably with HHI and HSC. It is clear, however, that we are not obligated to repurchase the Shares from CIBC. We would like to reiterate our commitment and promise not to increase our holdings and exposure in HITC. D.K. Chang Executive Vice President Hyundai Electronics Industries Co., Ltd.

The post Our Position regarding the Sale of Shares in Hyundai Investment Trust Co., Ltd. first appeared on SK hynix Newsroom.

SWIB, invested US$100 Million, is a world renowned pension fund and in charge of operating the Wisconsin Retirement System with nearly US$65 Billion in assets. This is the ninth largest public pension fund in the United Sates. Also Hyundai succeeded to induce US$100 Million of capital from Credit Suisse First Boston, a world leading investment bank. SWIB and CSFB received in return Hyundai’s treasury stocks, which had been acquired during the course of merger with LG semicon, for the investment. Hyundai succeeded in concluding this stock disposal at no discount. Through these successive investment, Hyundai reaffirmed its policy selling its treasury stocks to strategic investors or long-term investors such as SWIB and CSFB while restraining itself from selling the stocks directly in the market to minimize the increase of floating stocks and the undesirable impact to its share price consequently. Hyundai will utilize the raised capital of US$200 Million to improve its capital structure and operation of business organizations.

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