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SK hynix to Strengthen AI Semiconductor Market Position with New Strategic Unit

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BNN Correspondents
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SK hynix to Strengthen AI Semiconductor Market Position with New Strategic Unit

Memory chip giant, SK hynix Inc., has embarked on a strategic move to fortify its standing in the artificial intelligence (AI) semiconductor market. The company has announced the inception of a novel unit, AI Infra, which will centralize its high bandwidth memory (HBM) capabilities and concentrate on fostering new markets for AI-enabled technologies. The formation of AI Infra aligns with SK hynix's broader strategy to focus on high-demand, premium chips in a challenging business milieu.

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AI Infra and N-S Committee: Strategic Initiatives

Kim Juseon, previously serving as the head of the global sales marketing division, will now lead the new unit, AI Infra. In addition to AI Infra, SK hynix has also introduced the N-S Committee, a strategic group dedicated to bolstering the NAND flash memory and solutions business. This committee will operate as a control tower, striving to enhance profitability and optimize resource utilization.

Leadership Reshuffle

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The corporate restructuring also brought about a change in the leadership, with President Kwak Noh-jung assuming the role of the sole CEO following the departure of co-CEO and Vice Chairman Park Jung-ho. Despite the recent streak of operating losses, SK hynix reported a reducing deficit, fueled by a resurgence in demand for high-performance AI memory chips like the HBM3.

Market Dynamics

SK hynix's move comes at a time when the market for AI processors is witnessing an upswing. Key player AMD estimated a $45 billion market for data center AI processors this year, showing a significant rise from its previous estimate of $30 billion in June. AMD also launched a new generation of AI chips and unveiled a new version of the software necessary to deploy the chips for AI. These market dynamics underscore the potential that SK hynix seeks to tap into with its new strategic initiatives.

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