We are one of the world’s largest memory semiconductor companies and engage in
the design, manufacture and sale of advanced memory semiconductors. In the DRAM
market that includes HBM, we were ranked second globally based on revenue with a
market share of 29.1% in the first quarter of 2026, according to market research
conducted by IDC. In the HBM market, we were ranked first globally based on
revenue with a market share of 56.4% in the first quarter of 2026, according to
IDC. In addition, we were the second largest supplier of NAND flash memory based
on revenue, with a worldwide market share of 18.5% in the first quarter of 2026,
according to IDC. Our memory products can be used in virtually all electronic
devices, including graphics cards, personal computers (“PCs”), data center
servers, mobile devices such as smartphones and tablets, and other consumer
electronics products. We also conduct our foundry business through SK hynix
system ic Inc. (“SK hynix system ic”) and SK keyfoundry Inc. (“SK keyfoundry”),
our wholly-owned subsidiaries.
We sell a wide variety of DRAM and NAND flash memory products with various
configuration options, architectures and performance characteristics tailored to
meet application- and customer-specific needs. We believe that we are one of the
world’s leading companies in developing DRAMs with advanced specifications,
particularly those requiring higher density, faster data-processing speed and
lower power consumption. We are continually developing higher-density DRAM
modules, SSDs and other advanced DRAM and NAND flash memory products that are
optimized for our customers’ specific applications. In recent years, we have
substantially increased our sales of HBMs. HBMs are advanced memory
semiconductors designed to deliver fast data transfers while using less power,
making them especially useful in high-performance applications such as GPUs, AI
and high-performance computing.
We have focused our sales and marketing activities in recent years on expanding
our base of long-term strategic customers. We believe that our expertise and
know-how in producing advanced memory semiconductors, strong long-term
relationships with our key customers and state-of-the-art global production
facilities in key strategic locations provide us with sustainable competitive
advantages that will continue to differentiate us from our competitors and
enable us to take advantage of attractive growth opportunities. We believe that
we are a global leader in the HBM market with advanced production know-how and
development of specific configurations that meet our customers’ demands. Our
customers seek HBM suppliers with whom they can better align their own product
development efforts and their strict quality standards often require HBM
manufacturers to comply with rigorous testing and approval processes. We believe
that our strengths in HBM, server DRAM and eSSD enable us to mitigate the risks
associated with the cyclicality of the memory semiconductor market.
We own and operate wafer fabrication facilities (“fabs”) in Icheon and Cheongju,
Korea and Wuxi and Dalian, China. We also own and operate assembly and testing
facilities for back-end processing of our products in Icheon and Cheongju, Korea
and Chongqing, China. As part of our efforts to reduce unit manufacturing costs,
improve manufacturing yields and enhance our profitability, we periodically
phase out the operations of our older fabs or upgrade them to implement more
advanced processing technologies. In addition to regular maintenance and
enhancement of existing fabs, in October 2025, we opened the cleanroom of a new
extension fab called “M15X” in Cheongju, which we plan to utilize to further
increase our production capacity of next-generation DRAMs such as HBM. We began
wafer input at the M15X in the first quarter of 2026 and expect to gradually
ramp up our production volume. As part of our efforts to ensure our long-term
competitiveness, we have also announced initiatives to construct an integrated
industrial complex in Yongin, Korea for our next generation of fabs and research
and development facilities. We began construction of our first fab at the Yongin
complex in February 2025 with the phase 1 cleanroom of the first fab expected to
open in the first quarter of 2027. We are currently constructing an advanced
packaging plant called “P&T7” in Cheongju and expect to complete construction by
the end of 2027. In December 2024, we also announced plans to build an advanced
packaging plant in Indiana, United States, and expect to commence operations in
the second half of 2028.
In order to maintain our technological leadership, as well as to access new
markets for our products, we engage in strategic initiatives, including making
investments and acquisitions, from time to time. In October 2020, we agreed to
acquire the NAND flash memory and storage business of Intel Corporation
(“Intel”) (the “Intel NAND Business Acquisition”), including the NAND flash
memory manufacturing facility in Dalian, China, NAND flash memory and
SSD-related intellectual property and research and development personnel. As
consideration for the Intel NAND Business Acquisition, we paid US$6.6 billion in
December 2021 and US$2.2 billion in March 2025. We created a subsidiary in the
United States to operate the acquired business under the brand name “Solidigm.”
We also selectively acquire minority equity positions in other industry players
to further strengthen our business relationships and acquire complementary
businesses that we believe can further strengthen our leading position in the
industry.
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Our principal executive offices are located at 2091, Gyeongchung-daero,
Bubal-eup, Icheon-si, Gyeonggi-do 17336, Korea. Our telephone number is +82 (31)
5185-4114, and our website is www.skhynix.com.
