SK hynix participated in SEMICON^® Korea 2025, held at COEX in Seoul from February 19–21, sharing insights into semiconductor technology trends and reinforcing its AI memory leadership.

Organized by SEMI¹, SEMICON Korea has grown to become the country’s largest semiconductor exhibition since its launch in 1987. The event brings together semiconductor manufacturers, along with materials, components, and equipment companies, to exchange the latest technologies and trends. This year’s exhibition, themed “Lead the Edge to the New Era,” featured various exhibits and presentations which explored the technological edge needed to drive AI innovation.

¹SEMI: The global industry association with over 3,000 member companies worldwide across the semiconductor and electronics design and manufacturing supply chain.

Sharing Industry Expertise & Strengthening Collaboration

At the event, SK hynix experts provided insights on various topics ranging from next-generation memory to sustainable manufacturing technology.

These presentations covered emerging memory² technologies such as SOM³, HBM⁴ stacking technology, and advanced manufacturing methods. The employees also gave talks on fab automation, digital twin⁵ applications, and the company’s net zero initiatives, highlighting SK hynix’s commitment to innovation and sustainability.

²Emerging memory: A new class of memory technologies that differ from traditional DRAM and NAND flash, including RRAM, MRAM, PCM, and FeRAM.
³Selector-Only Memory (SOM): A cross-point memory device that integrates both selector and memory functions using a dual-function material (DFM).
⁴High Bandwidth Memory (HBM): A high-value, high-performance product that possesses much higher data processing speeds compared to existing DRAMs by vertically connecting multiple DRAMs with through-silicon via (TSV).
⁵Digital twin: A technology that creates a virtual replica of a physical object, allowing simulations to predict real-world outcomes.

Meanwhile, SK hynix CEO Kwak Noh-Jung, in his capacity as Chairman of the Korea Semiconductor Industry Association (KSIA), attended the leadership dinner on the first day of the exhibition. Kwak engaged with global semiconductor leaders and executives at the dinner, fostering stronger industry collaboration and partnerships.

During his congratulatory speech, Kwak emphasized the growing need for the semiconductor industry to adapt in the AI era and meet future challenges and opportunities.

“Semiconductors are a crucial resource that drives both the global economy and national security. Their importance has grown even further in the AI era,” he said.

“In line with this year’s theme, Lead the Edge to the New Era, companies across the industry need to continue expanding new technologies and possibilities to prepare for the future.”

Leading the New Era

At SEMICON Korea 2025, SK hynix underscored its pivotal role in shaping the future of semiconductor technology. By sharing insights on cutting-edge memory technologies and sustainable practices, the company not only reinforced its AI memory leadership but also demonstrated its commitment to driving industry-wide innovation. As the industry continues to evolve, SK hynix is poised to lead the charge toward a more advanced and sustainable era.

The post SK hynix at SEMICON Korea 2025: Addressing the Future of Semiconductors first appeared on SK hynix Newsroom.

¹Net Zero: The objective of reducing greenhouse gas emissions to a level where the amount of emissions is equal to the amount of those absorbed and removed, resulting in a state where the actual greenhouse gas emissions are zero.

Comprised of 12 specialized subcommittees, the CMC drives greenhouse gas (GHG) reduction efforts to cut emissions for each scope². The committee has already achieved significant milestones as it works toward its net zero goal, including the development of neon gas recycling technology, alternative gases, and high-efficiency, low-power scrubbers.

²Scope: Greenhouse gas emissions are categorized into Scope 1 (direct emissions), Scope 2 (indirect emissions), and Scope 3 (all other indirect emissions).

This article will focus on a project by the CMC’s Low-Power Pump Introduction subcommittee to develop low-power vacuum pumps and improve existing models, marking another step toward reaching net zero by 2050.

(From left) Members of the CMC’s Low-Power Pump Introduction subcommittee: Jungbin Lee (Technical Leader [TL] of Components Standardization), Seho Lee (TL of ThinFilm Technology Strategy), Haeyong Sung (Team lead of Components Standardization), Jinsik Yoo (TL of Components Standardization), and Seungwon Choi (TL of Components Standardization)

Low-Power Pumps: Advancing Semiconductor Miniaturization & GHG Reduction

Pumps play a vital role in determining the quality and yield of semiconductors by creating high-vacuum environments and eliminating impurities in increasingly miniaturized semiconductor processes. They account for approximately 15% of the total electricity usage of a fabrication plant (fab). The project therefore aimed to minimize the electricity consumption of pumps by introducing new low-power pumps and enhancing the energy efficiency of existing models, ultimately reducing Scope 2³ emissions.

³Scope 2: Indirect GHG emissions associated with the purchase and use of electricity, steam, heat, or cooling.

By implementing changes to motors, materials, structures, and introducing a new architecture, the team successfully developed low-power pumps to be deployed across existing and newly constructed SK hynix fabs. Efforts to reduce the capacity of existing pumps, such as lowering their revolutions per minute (RPM)⁴, have further cut power consumption. These upgrades will be applied to processes such as etching⁵ in existing fabs.

⁴Revolutions per minute (RPM): A measure of the speed at which a pump’s motor rotates, specifically the number of rotations around a fixed axis in one minute. Lowering the RPM reduces power consumption while maintaining the necessary operational performance.
⁵Etching: A process in semiconductor manufacturing where materials are removed from a wafer’s surface using chemicals or plasma to create precise patterns for circuits.

To learn more details about this remarkable achievement, the SK hynix Newsroom spoke with three members of the Low-Power Pump Introduction subcommittee: Jinsik Yoo and Jungbin Lee of Components Standardization and Seho Lee of Thin Film Technology Strategy.

(From left) Seho Lee, Jinsik Yoo, and Jungbin Lee discuss their project to develop low-power pumps

A Leap Forward: New Pumps Consume Nearly 40% Less Power Than Predecessors

In the first quarter of 2024, SK hynix began evaluating the newly developed low-power pumps for potential adoption. By the third quarter of the same year, the company started introducing these pumps in existing fabs through strategic investments. For the M15X fab and the Yongin Semiconductor Cluster, which are both currently under construction, the company plans to fully apply these new pumps only to processes that have been thoroughly evaluated. SK hynix also intends to expand the adoption of these low-power pumps to additional processes in the future.

During the initial evaluation phase in the first quarter of 2024, the team found that reducing the pump capacity in etching processes from 30,000 liters to 20,000 liters did not significantly impact semiconductor quality or yield. As a result, new investments in etching processes since the third quarter of 2024 have involved reducing pump capacity, in addition to incorporating low-power pumps, to maximize energy efficiency.

“By introducing the low-power pumps and reducing pump capacity, we have significantly cut power consumption. This is expected to not only lower carbon emissions but also contribute to savings in investments, repairs, and operating costs,” Jinsik Yoo explained.

Based on the main process standards of the existing M14 fab, it is estimated that using the low-power pumps rather than conventional models in the fabs currently under construction could decrease pump power consumption by 39.7%. This reduction in power consumption will substantially cut carbon emissions from electricity generation to help lower Scope 2 emissions.

The new low-power pumps consume significantly less power than their predecessors

Optimizing Existing Pumps: Cutting Power Consumption Through RPM Adjustment

In addition to developing low-power pumps, the project also focused on reducing the power consumption of existing pumps. “We could not feasibly replace every pump,” Jungbin Lee noted. “Therefore, the most effective path forward was to minimize the energy usage of our existing pumps, leading to many discussions to find the optimal solution.”

Following extensive talks, the Low-Power Pump Introduction subcommittee proposed reducing power consumption by lowering the RPM of existing pumps. To ensure this method would not affect ongoing processes, they conducted thorough Proof of Concept (PoC) verification, which included theoretical analysis, simulations, and on-site evaluations.

The verification process proved to be particularly challenging due to the variety of pump models from different manufacturers. Collaborating closely with field engineers, the team tested each pump individually to analyze yields and potential consequences of the RPM reduction.

After completing rigorous theoretical analysis and simulation modeling, the subcommittee piloted RPM reductions in select pumps used for the etching process and confirmed the change had no significant impact on the process yield. Encouraged by the pilot’s success, the team expanded evaluations at the M15 and M16 fabs.

“Once the process evaluations are complete and the RPM reductions are applied across the entire etching process at the M15 and M16 fabs, we expect to reduce average pump power consumption by 16.7%,” said Jinsik Yoo. “This improvement will cut electricity costs and help to reduce carbon emissions.”

By lowering pump RPM, the CMC expects to achieve key power savings

Shared Values & Collaboration: Key to the Successful Development of Low-Power Pumps

One key factor in the project’s success was the subcommittee’s strong collaboration with five pump partner companies and field engineers. “Thanks to this cooperation, where everyone shared the company’s goal of achieving net zero by 2050, we were able to develop and validate the new low-power pumps in a timely manner,” noted Seho Lee.

“Developing these innovative pumps presented significant challenges as there was limited data in this emerging field,” Jinsik Yoo added. “However, the proactive spirit of our partners, including their willingness to directly coordinate with their overseas headquarters, ensured the smooth and successful execution of the project.”

Field engineers also played a crucial role in the project’s success. Jungbin Lee said: “Engineers balanced their regular duties while taking on this project’s tasks such as analyzing equipment conditions and verifying test materials. Despite the challenges, their commitment to reaching the company’s 2050 net zero goal drove us to achieve the results we see today.”

The Low-Power Pump Introduction subcommittee actively supported various aspects of the project to ensure the seamless integration of new pumps into production. In particular, the subcommittee proactively assisted the process by estimating the additional costs expected from the introduction of the new pumps and preparing expenses and investment support in advance.

(From left) Seho Lee, Jinsik Yoo, and Jungbin Lee are determined to complete the pump project and achieve net zero by 2050

Reflecting on this collaborative triumph, Seho Lee said: “This project goes beyond sustainable management. It aims to protect the climate of our one and only planet, so I took a more active approach. This project made me realize that our pump partner companies and field engineers are united by shared values.”

Looking ahead, Jungbin Lee expressed his commitment to successfully completing the ongoing project and continuing the work to achieve net zero by 2050. “Building on the success of this project, we will also be leveraging AI technology in the future to optimize low-power pump management,” he said. “By selecting the optimal pump models and deploying them in the most effective locations, we aim to further reduce energy consumption and move closer to achieving our 2050 net zero goal.”

The post A Step Closer to Net Zero: SK hynix Adopts Low-Power Pumps to Cut Carbon Emissions first appeared on SK hynix Newsroom.

SK hynix has returned to Las Vegas for Consumer Electronics Show (CES) 2025, showcasing its latest AI memory innovations reshaping the industry. Held from January 7–10, CES 2025 brings together the brightest minds and groundbreaking technologies from the world’s leading tech companies.

This year, the event’s theme is “Dive In,” inviting attendees to immerse themselves in the next wave of technological advancement. SK hynix is emphasizing how it is driving this wave through a display of leading AI memory technologies at the SK Group exhibit. Along with SK Telecom, SKC, and SK Enmove, the company is highlighting how the Group’s AI infrastructure brings about true change under the theme “Innovative AI, Sustainable Tomorrow.”

Groundbreaking Memory Tech Driving Change in the AI Era

SK hynix is underlining its AI memory leadership at CES 2025

Visitors enter SK Group’s exhibit through the Innovation Gate, greeted by a video of dynamic wave-inspired visuals which symbolize the power of AI. The video shows the transformation of binary data into a wave which flows through the exhibition, highlighting how data and AI drives change across industries.

Continuing deeper into the exhibit, attendees make their way into the AI Data Center area, the focal point of SK hynix’s display. This area features the company’s transformative memory products driving progress in the AI era. Among the cutting-edge AI memory technologies on display are SK hynix’s HBM¹, server DRAM, eSSD, CXL^®2, and PIM³ products.

¹High Bandwidth Memory (HBM): A high-performance memory that vertically stacks multiple DRAM chips with through-silicon via (TSV). HBM3E is the extended version of HBM3, the fourth generation following HBM, HBM2, and HBM2E.
²Compute Express Link^®(CXL^®): A next-generation interface that connects the CPU, GPU, memory, and other components to efficiently enhance the performance of high-performance computing systems.
³Processing-In-Memory (PIM): A next-generation technology that integrates computational capabilities into memory, addressing data movement bottlenecks in AI and big data processing.

The 48 GB 16-layer HBM3E takes center stage at the AI Data Center area

A sample of the company’s pioneering 16-layer HBM3E is prominently showcased at the event, highlighting SK hynix’s leadership in the HBM field. As the world’s largest capacity HBM, the 48 GB 16-layer HBM3E, which is currently under development, is optimized for AI learning and inference. Visitors can also check out DDR5 RDIMM and MCR DIMM, high-speed server DRAM modules tailored for data center environments which offer rapid data processing and large memory capacity.

SK hynix’s cutting-edge AI memory technologies on display

As data storage becomes ever more crucial in the AI landscape, SK hynix is also showcasing its eSSD (enterprise SSD) solutions, including PS1010, PEB110, and PE9010. Designed for data centers, these products offer the reliability and rapid read/write speeds needed to handle the immense data generated by AI applications. Additionally, SK hynix is presenting its groundbreaking CXL technologies, such as CMM-DDR5⁴ and CMM-Ax⁵, which are pushing the boundaries of memory interfaces for enhanced flexibility and scalability in AI systems. Also on display are PIM solutions including GDDR6-AiM and AiMX⁶, a high-speed, low-power accelerator card which performs computational functions, revolutionizing data processing efficiency in AI environments.

⁴CXL Memory Module-DDR5 (CMM-DDR5): A next-generation DDR5 memory module utilizing CXL technology to boost bandwidth and performance for AI, cloud, and high-performance computing.
⁵CXL Memory Module-Ax (CMM-Ax): A high-performance memory module optimized for computational workloads, improving AI and data center efficiency.
⁶Accelerator-in-Memory Based Accelerator (AiMX): SK hynix’s specialized accelerator card tailored for large language model processing using GDDR6-AiM chips.

Visitors can also check out the company’s innovative on-device AI solutions

SK hynix is also showcasing its on-device AI solutions⁷ to highlight the AI service applications of its products. These include LPCAMM2⁸, the mobile NAND solution ZUFS⁹ 4.0, and PCB01—the industry’s highest-performing SSD for on-device AI PCs. Through these displays, SK hynix is underlining how these technologies deliver top performance with power efficiency, empowering a range of applications from mobile AI to consumer electronics.

⁷On-device AI: A technology that enables real-time AI processing directly on devices, enhancing responsiveness and delivering personalized services without relying on cloud-based computation.
⁸Low Power Compression Attached Memory Module 2 (LPCAMM2): LPDDR5X-based module solution that offers power efficiency and high performance as well as space savings. It offers performance levels equivalent to two DDR5 SODIMMs, making it optimized for on-device AI.
⁹Zoned Universal Flash Storage (ZUFS): An advanced version of UFS that improves data management efficiency by organizing data into zones, optimizing transfer between the operating system and storage device.

A Pioneer for a Sustainable Future

As CES 2025 unfolds, SK hynix’s presence once again cements its position as a leader in AI memory solutions. Through its innovative products and visionary approach, the company is demonstrating the essential role memory plays in the growing AI ecosystem. At CES 2025, SK hynix is not just showcasing products, but also offering a glimpse into a future where AI drives sustainable progress across industries. Looking ahead, CEO Kwak Noh-Jung shared the company’s vision. “Driven by constant technological innovation and a robust product lineup tailored for the AI era, SK hynix is on track to becoming a full stack AI solution provider,” he said.

The post SK hynix Showcases AI-Driven Innovations for a Sustainable Tomorrow at CES 2025 first appeared on SK hynix Newsroom.

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 was invited to speak at the event by the SCC², an organization under SEMI, to share its efforts in reducing greenhouse gas (GHG) emissions. As an SCC co-founder, SK hynix has actively collaborated with leading industry players to create a sustainable semiconductor value chain and set new heights in green practices.

¹Semiconductor Equipment and Materials International (SEMI): An international industry association consisting of global semiconductor equipment and materials manufacturers which aims to advance industry collaboration and growth.
²Semiconductor Climate Consortium (SCC): The first global consultative body formed to reduce greenhouse gas emissions throughout the semiconductor value chain. Its members include semiconductor companies in the material, component, equipment, and manufacturing fields, including SK hynix, and global ICT companies.

SK hynix presented its “Journey to Decarbonization” plan at SEMICON West 2024

The Road to Decarbonization

As demand for high-performance memory rises in line with the growth of advanced technologies such as AI, the semiconductor industry faces the challenge of increasing production while improving its sustainability. In particular, semiconductor companies are focusing on methods to cut GHG emissions.

In a bid to improve company-wide strategies for reducing GHG emissions, SK hynix established its Carbon Management Committee (CMC) in 2022. The committee leads various initiatives such as developing low-power equipment, reducing process gases, and cutting energy consumption. On a broader level, the company collaborates with suppliers and industry players to adapt sustainable practices. The company’s multi-faceted approach to sustainability is set to be crucial as it looks to reduce Scope 1, 2 and 3³ emissions.

³Scope 1, 2 and 3: Scope 1 refers to direct emissions generated in the production stage, while Scope 2 describes indirect energy-related emissions generated in the process of making electricity or steam used in the workplace. Scope 3 are indirect emissions which occur in an organization’s value chain.

At SEMICON West 2024, SK hynix’s presentation focused on its efforts to reduce Scope 1 and 3 emissions. Jonghwan Lee of Etch Diffusion Thin Film Water (EDTW) Material Development and Jaehoon Jang of Climate Action took to the stage on the second day of the conference for the talk.

Fostering a Sustainable Semiconductor Ecosystem

During Jang’s part of the presentation, he highlighted SK hynix’s efforts to address Scope 3 emissions through industry collaborations. Working with suppliers and other players, the company develops sustainable technologies and methods across the industry supply chain. As a CDP⁴ Supply Chain member since 2022, SK hynix encourages its suppliers to disclose environmental data and reports. In 2023, the company ensured that 84% of 114 suppliers shared the requested data as part of the CDP Supply Chain Program. In addition, the company supported suppliers in setting and achieving climate change response goals.

⁴CDP: Previously known as the Climate Disclosure Project, CDP is a non-profit organization which assists and guides organizations in setting up strategies and implementing sustainable practices.

SK hynix ensures the majority of its suppliers participate in the CDP Supply Chain Program

Jang also touched on SK hynix’s creation of ECO Alliance, a coalition dedicated to reducing GHG emissions in the company’s supply chain. Launched in 2019 with 31 first-tier suppliers, ECO Alliance expanded to include 47 companies by 2023. Some of its main activities include setting joint GHG reduction targets, participating in the aforementioned CDP Supply Chain program, and hosting workshops where members share best practices and meet potential collaborators.

In 2022, SK hynix announced joint targets for ECO Alliance members related to sustainable practices including GHG reduction. As the company provided tailored one-on-one consulting to members, 39 out of the 47 member companies were able to set at least one target aligned with the joint targets in 2023.

Jang shares how SK hynix has become a global leader in fostering sustainable industry practices

Three-Pronged Approach to Cutting Emissions

For his part of the presentation, Lee focused on three of SK hynix’s efforts to reduce its Scope 1 emissions. At semiconductor fabs, high GWP⁵ process gases account for the majority of Scope 1 emissions so it is vital to optimize them and adopt alternative gases. These two initiatives, along with enhancing scrubber⁶ treatment efficiency, were the central points of Lee’s talk.

⁵Global warming potential (GWP): A measure of how much energy the emissions of 1 ton of a gas will absorb over a given period relative to the emissions of 1 ton of carbon dioxide.
⁶Scrubber: Equipment that filters and treats waste gases generated during the semiconductor manufacturing process.

SK hynix has seen positive results in developing alternative gases by engaging in three-way collaborations with material and equipment partners. In 2023, the company successfully applied alternative gases with a lower GWP to some processes while not compromising product quality. Building on this achievement, the company is currently testing more than 15 alternative gases for future application in processes.

Lee also covered some of SK hynix’s approaches to optimizing process gas usage. The company is enhancing the process time and gas flow rate during the etching process and optimizing the gas used for cleaning equipment during the thin film and diffusion processes. Furthermore, SK hynix has reduced the use of nitrogen trifluoride (NF3), a key contributor to the company’s Scope 1 emissions, by optimizing cleaning processes involving the gas. In total, the number of SK hynix’s optimization cases for thin film and diffusion processes have increased 12-fold since 2022, leading to a more than three-fold reduction in GHG emissions over the same period.

SK hynix’s optimization cases for thin film and diffusion processes have risen sharply in recent years

The presentation also covered SK hynix’s efforts to enhance the efficiency of scrubbers that remove gases and compounds generated during semiconductor processes. The company has set a goal to increase its scrubber treatment efficiency to 95% by 2030, up from 93% recorded in 2023. To achieve this, the company is working on various initiatives such as developing new equipment to reduce scrubbers’ water and power consumption and enabling a single scrubber to treat gases from multiple pieces of equipment.

Overall, the transition to alternative gases, optimization of gas usage, and improvements in scrubber treatment efficiency are projected to help SK hynix realize a 73% reduction in Scope 1 emissions by 2050.

Lee gives an overview of how SK hynix is reducing its Scope 1 emissions

A Greener Industry is Possible Together

At SEMICON West 2024, SK hynix underlined its position as a key driving force behind initiatives which reduce GHG emissions in the semiconductor industry. From the company’s innovative approaches to cut direct emissions to the collaborations for reducing emissions throughout the supply chain, SK hynix is a leading light in the sector’s sustainability efforts. Looking ahead, the company remains committed to developing technologies and collaborating with the semiconductor community as it continues its journey to decarbonization.

The post SK hynix Presents Its “Journey to Decarbonization” at SEMICON West 2024 first appeared on SK hynix Newsroom.

Figure 1. SK hynix received the Best ESG Bond award at the 2023 IFR Asia Awards dinner

The Inner Workings of SK hynix’s Triple-Tranche Bond

SK hynix’s triple-tranche bond was noted for being creative and offering a variety of investment options while adhering to the needs of both the issuer and investors. The bond was comprised of three segments: a USD 750 million 6.25% 3-year conventional bond, a USD 1 billion 6.375% 5-year sustainability-linked bond (SLB)¹, and a USD 750 million 10-year 6.5% green bond². The balance of the SLB and green bond in the same transaction drew particular attention for offering something unique to the market.

The SLB, which was a first for a global semiconductor memory manufacturer, has a core environmental-related KPI. By 2026, it aims for at least a 57% reduction in Scope 1 and Scope 2³ greenhouse gas (GHG) emissions intensity⁴ compared to a 2020 baseline.

¹Sustainability-linked bond (SLB): A fixed-income bond tied to predefined ESG objectives that are measured through predefined KPIs. The interest rates of the bond can vary depending on whether the issuer achieves its objectives.
²Green bond: A debt security issued by an organization to finance or refinance projects that are positive for the environment and/or the climate.
³Scope 1 and 2: Scope 1 refers to direct emissions generated in the production stage, while Scope 2 describes indirect energy-related emissions generated in the process of making electricity or steam used in the workplace.
⁴Greenhouse gas (GHG) emissions intensity: The amount of GHG released per production capacity for SK hynix’s semiconductor memory.

Meanwhile, the net proceeds from the green bond have been allocated towards the financing or refinancing of environmental projects outlined in SK hynix’s Green Financing Framework. These include sustainable water and wastewater management, energy efficiency, pollution prevention and control, and terrestrial and aquatic biodiversity conservation.

These bonds play a key role in helping SK hynix reach its sustainability goals, such as reaching net zero emissions by 2050. Its environmental commitments are further highlighted by its status as a founding member of the global Semiconductor Climate Consortium, the first consultative body which targets GHG reductions throughout the semiconductor value chain.

Green Bond Funds a More Sustainable Semiconductor Ecosystem

Figure 2. Allocation by category of the green bond’s USD 750 million proceeds

In addition to being the most popular portion of the triple tranche deal, the green bond has realized significant advancements in SK hynix’s products as well as its environmental efforts. A total of 92.8%, or USD 696 million, of the bond’s total proceeds (USD 750 million) was allocated by the third quarter of 2023, with all of the funds expected to be allocated by the end of 2023 (awaiting confirmation of fourth quarter data).

[Read the 2024 green bond annual report for more information on its impact here]

Figure 3. The green bond’s positive effect on water management from 2020 to 2023

Among the funds, USD 6.90 million was allocated to sustainable water and wastewater management. Efforts included work on a regional municipal water project, construction of a drainage reuse system for a cooling tower, and improvements on a water pollution treatment facility. As a result, the company expects to see an increase in its water reuse rate and a reduction in wastewater discharge.

Figure 4. DDR5 offers reduced power consumption compared to its predecessor

SK hynix allocated its largest portion of the green bond’s proceeds for improving energy efficiency as the company invested USD 681.16 million in realizing significant related advancements in the company’s products. These developments included its industry-leading server DRAM DDR5 achieving a 70% increase in server bandwidth compared to DDR4, while its power consumption decreased by 14.4% compared to the previous generation. The performance per watt of the company’s latest SSD product, PS1010 E3.S, also improved by 85% from the earlier generation PE8110 E1.S.

Figure 5. An ecological park near SK hynix’s Icheon main campus which uses recycled water

A further USD 750,000 was allocated to terrestrial and aquatic biodiversity conservation. These funds supported construction of a large public ecological park near SK hynix’s Icheon campus which stretches the area of nearly four American football fields. At the park, crystal-clear water comes from the campus’ wastewater treatment plant and flows into the Jukdang Stream in Icheon.

Figure 6. Reduction of NOx emissions in tons at the Icheon and Cheongju fabs

Another USD 6.96 million was allocated to pollution prevention and control. The proceeds funded monitoring systems for atmospheric management, infrastructure for nitrogen oxide reduction, and a temperature reduction system in both the company’s Icheon and Cheongju fabs. Consequently, from 2020 to 2023, emissions of nitrogen oxides (NOx) were reduced by around 530 tons in these two major fabs. In addition, air pollutant analysis systems and water quality measurement systems have been installed in the fabs to monitor for environmental problems, minimize environmental harm, and make restoration efforts.

Figure 7. Financial Management Head Hyungmo Yang highlights how the bond supports SK hynix’s environmental goals

“Our triple-tranche bond offers varied investment opportunities while also supporting our sustainability efforts,” said Hyungmo Yang, head of Financial Management. “In particular, the green bond funds environmental innovations such as increased product energy efficiency, improved wastewater management, and pollution reduction. Going forward, the bond’s proceeds will continue to help us meet our environmental goals.”

The post SK hynix Wins IFR Asia Award for Innovative Sustainability Bond first appeared on SK hynix Newsroom.

[Click here to download the report]

The SK hynix Sustainability Report 2023 evaluates and analyzes the company’s ESG management performance in line with the five pillars of its ESG strategy framework PRISM. The report provides an overview of SK hynix’s ESG-related information, including the goals for its mid- to long-term roadmap, its annual targets, and the company’s performance in achieving its 2022 targets.

Regarding goals related to PRISM’s first pillar “P (Pursue a brighter future based on our philosophy)”, the company reduced the integrated incidents rate, which represents the percentage of accidents at industrial sites, by 1.8% in 2022 compared to the previous year. Also, SK hynix recorded the value created from SV social contribution activities of KRW 250.6 billion, vastly exceeding the annual target of KRW 190.3 billion.

For the second pillar “R (Restore the environment to preserve the planet)”, the report contains data on goals related to climate action, water stewardship, and the circular economy¹. Water stewardship plays a key role in the semiconductor industry and SK hynix has been making efforts in this area by expanding water reuse infrastructure and optimizing water use. This has resulted in the company conserving 49.43 million tons of water in 2022, while its cumulative water conservation total since 2021 reached 99.23 million tons. In terms of climate action, SK hynix achieved RE100² with a 100% renewable electricity usage rate at overseas sites. Companywide, SK hynix increased its renewable electricity usage rate from 4% in 2021 to 29.6% in 2022 by actively utilizing the green premium system³. Lastly, SK hynix received the platinum Zero Waste to Landfill (ZWTL)⁴ validation, the highest level obtainable, by diverting 100% of waste away from landfill for all domestic sites.

¹ Circular economy: A model of production and consumption, where items and products are reused whenever possible rather than discarded.

² Renewable Electricity 100 (RE100): A global initiative for businesses to procure 100% of electricity via renewable electricity.

³ Green premium: The additional cost for a product or service that does not emit greenhouse gases. The green premium helps to measure progress on sustainable technologies and determine which industries and manufacturing processes need to innovate to achieve net zero emissions by 2050.

⁴ Zero Waste to Landfill (ZWTL): A certification from Underwriters Laboratories (UL) that evaluates a company’s actual waste recycling rate and landfill volume based on its level of resource recycling and the final landfill volume of residuals generated during waste disposal.

In the “I (Innovate our technology for tomorrow)” pillar, SK hynix achieved significant progress in 2022. This included improving scrubber processing⁵ efficiency by 94% domestically and increasing the energy efficiency of its high-performance DRAM HBM by 1.28 times compared to the baseline year of 2020.

⁵ Scrubber processing: The process of treating waste gases generated during the semiconductor manufacturing process.

Meanwhile, in the “S (Synchronize sustainability efforts with our partners)” pillar, SK hynix achieved its annual target for investments in technological cooperation to promote shared growth as the total reached KRW 368.2 billion in 2022, while the cumulative amount stood at KRW 698.6 billion since 2021.

Regarding the final pillar “M (Motivate our people toward excellence)”, SK hynix set goals to increase diversity and develop employees’ skills. Among them, SK hynix made promising progress in female representation as the proportion of female executives reached 2.1% in 2022 from 1.9% in 2021, and the proportion of female team leaders rose to 4.2% from 3.7% over the same period.

▲ SK hynix’s Sustainability Reporting System site

In order to transparently disclose information related to sustainable management, including the company’s ESG activities, SK hynix established the Sustainability Reporting System (SRS) in November 2022. Users can also download the SK hynix Sustainability Report 2023 from the SRS website.

*Note: The reduction rate of the integrated accident rate mentioned in this article for the year 2022 has been updated (as of July 28, 2023) from our initial figure to the final figure submitted to the Ministry of Employment and Labor.

The post SK hynix’s ESG Achievements Revealed in Sustainability Report 2023 first appeared on SK hynix Newsroom.

• Indirect contribution to economy of 7.7853 trillion won, environmental performance of business activity of -1.0423 trillion won, social performance of business activity of 841.5 billion won
• Indirect contribution to economy decreased by industry downturn, social performance increased by enhanced company culture
• First SK affiliate to conduct partner SV measurement, created 1.4698 trillion won of social value from 13 partners
• “Devote to enhance social value, ESG management capabilities in the semiconductor ecosystem”

Seoul, June 12, 2023

SK hynix Inc. (or “the company”, www.skhynix.com) today announced that it generated 7.5845 trillion won in social value last year.

SK hynix’s generation decreased by 20% in 2022 from 9.4173 trillion won recorded in 2021. By category, indirect contribution to economy totaled 7.7853 trillion won, while environmental performance of business activity recorded a negative 1.0423 trillion won and social performance of business activity reached 841.5 billion won.

Indirect contribution to economy decreased 20% from a year ago due to the decrease in tax payments by semiconductor industry downturn from last year. However, SK hynix devoted 37% of SK group’s total indirect contribution to economy which accounts approximately 20.8000 trillion won.

Social performance of business activity increased 29% from a year ago due to the improvement in ‘life quality of employees’ and the expansion of support for partner companies. Last year, SK hynix implemented various benefits such as ▲Happy Friday ▲Increase in parental leave ▲Family friendly vacation system to balance work and life of employees.

In addition, the company’s efforts to vitalize the domestic semiconductor ecosystem by fostering ‘technological innovative companies’ every year and strengthening technological cooperation to localize material and equipment contributed to social performance of business activity.

In the area of environment, however, negative impact increased by 9%. “As semiconductor production increased last year with company’s all-time high annual revenue, resource consumption and greenhouse gas emission naturally increased. But, such negative result was somewhat offset by development of low-power products, adoption of greenhouse gas reduction facilities and renewable energy migration including Green Premium System,” the company said.

Meanwhile, SK hynix expanded the measurement scope of social value to supply chain for the first among SK group affiliates. This is due to company’s judgement that creating SV and enhancing ESG management capabilities in the entire ecosystem beyond the company was essential to fulfill various ESG reinforcement demands from domestic and global stakeholders.

“As a result of consulting with 13 partners* in various industries, including material, equipment, logistics and environmental service, a total of 1.4698 trillion won social value was created in 2022. With this year’s evaluation, it is meaningful that partners have set up self-sustaining management system for SV and ESG data,” the company said.

*Included partners: DAEDUCK ELECTRONICS Co., Ltd /Dong Woo Fine-Chem Co., Ltd./MiCoCeramics Ltd./Veolia Industrial Development Korea/SIMMTECH Co., Ltd./WONIK Materials Co.,Ltd./WONIK HOLDINGS CO.,LTD./Eugene Technology Co.,Ltd./ KCTECH CO., LTD/ KoMiCo Ltd./ Techwing, Inc./ PNS Logis Co.,Ltd./ Hana Micron INC.

The partners above agreed that they would continue to put efforts onward to create more social values by upgrading the management system.

Kim Youn-wook, Vice President for Corporate Sustainability Management at SK hynix, said, “the company will continue to work together with various stakeholders, including its partners, to have positive impact in the semiconductor ecosystem and the society.”

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
Minseok Jang
E-Mail: global_newsroom@skhynix.com

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

Technical Leader
Joori Roh
E-Mail: global_newsroom@skhynix.com

The post SK hynix Generates 7.6T Won in Social Value in 2022 first appeared on SK hynix Newsroom.

SK hynix joins the global climate change response initiative alongside the global semiconductor industry. SK hynix announced on November 7th that it had recently joined the Semiconductor Climate Consortium (SCC), newly established by the Semiconductor Equipment and Materials International (SEMI)¹⁾, as a founding member.

¹⁾ Semiconductor Equipment and Materials International (SEMI) is an international industry association established in 1970 consisting of manufacturers in the global semiconductor equipment and materials industry. It responds to industrial policies and regulations, establishes industry standards, conducts market research and studies, and supports related industries by holding conferences and supporting educational projects.

The SCC is the first global consultative body formed to reduce greenhouse gas emissions throughout the semiconductor value chain, and major semiconductor companies leading in the material, component, equipment, and manufacturing fields–including SK hynix–and global ICT companies are participating as founding members.

SK hynix announced that it joined the SCC because of the need for a joint response to global climate change. To cooperate with the principles and goals set forth by the SCC, the company will collaborate closely on methodologies, technological innovation, and collective communication for reducing greenhouse gas emissions while reinforcing transparency in management through annual progress reports on its reduction of greenhouse gas emissions in Scope 1, 2, 3²⁾. SK hynix will also set long- and short-term goals for greenhouse gas reduction with the goal of achieving Net Zero³⁾ by 2050.

²⁾ Greenhouse Gas Scope 1, 2, 3: Greenhouse Gas Scope 1 refers to greenhouse gases (direct emissions) generated during product production. Scope 2 refers to greenhouse gases (indirect emissions) generated in the process of making electricity or steam used at worksites, and Scope 3 refers to greenhouse gases (other indirect emissions) emitted along the corporate value chain. In addition to direct product production, such emissions happen during raw material purchases, carrying out of logistics, and product use and disposal.
³⁾ Net Zero: Zero net emissions of the six major greenhouse gases, including carbon dioxide.

Ajit Manocha, President and CEO at SEMI, said, “I applaud SK hynix for its commitment to becoming a founding member of the Semiconductor Climate Consortium (SCC) and for its continued support of global sustainability efforts. To achieve Net Zero globally, we need to pool industry resources to solve the complex challenges of decarbonization. We expect SCC members to create the best solution through cooperation within the semiconductor value chain.”

Bangsil Lee, Head of ESG Strategy at SK hynix, said, “Collaboration between like-minded partners is essential for success in climate action. I believe that through the SCC, we can expedite our journey towards decarbonization and amplify the impacts of our concerted efforts to reduce greenhouse gas emissions. SK hynix will collaborate with all of our stakeholders throughout the entire value chain to establish a sustainable semiconductor ecosystem.”

The post SK hynix Becomes Founding Member of SCC, Joining Semiconductor Industry’s Efforts to Combat Climate Change first appeared on SK hynix Newsroom.