Samsung Electronics is facing a “cold winter,” and attention is focused on whether SK Hynix will recover.
This is because both companies have a similar memory chip-centered business structure, making them unable to avoid the impact of external factors such as industry conditions.
The prevailing view is that SK Hynix will take a different path from Samsung, responding to the AI era in a timely manner through proactive HBM investments.
Additionally, SK Hynix distinguishes itself from Samsung with a board that includes multiple technical experts and offers stock-linked compensation.
According to institutional reports, most companies predict that SK Hynix will maintain a solid lead in HBM, while Samsung Electronics’ key word is crisis.
This is due to the stable high-value demand centered on artificial intelligence that will persist for some time.
This means that once HBM competitiveness significantly leads, it will serve as the driving force to maintain an advantage in next-generation products.
Ongoing investments in HBM, aimed at the future, are seeing a longer payback period than initially expected due to the AI era.
SK Hynix holds a monopoly in the 8-layer/12-layer HBM3E market, leading to a differentiation in profitability, and AI GPUs will continue to develop in 2025 and 2026.
Given this, there is still room for further stock price growth.
SK Hynix, with a higher proportion of DDR5/HBM, is less affected by industry conditions.
The criticism of chip experts being excluded from major decision-making processes does not apply to SK Hynix.
The company discloses its board capability assessment BSM (Board Skills Matrix) in its annual sustainability report, self-assessing its industrial and technical capabilities at around 40%.
This is the result of years of effort in recruiting talent with industrial and technical expertise in chips, design, and materials.
SK Hynix stated this year that to supplement the relatively low proportion of board expertise in industrial and technical capabilities in the first BSM assessment introduced in 2022, it recruited directors with high semiconductor technology expertise and appointed them as new directors in 2023.
This further strengthened its strategic decision-making capabilities related to the chip industry.
Currently, SK Hynix’s board consists of 10 members, including 2 executive directors, 2 other non-executive directors, and 6 external directors.
Among them, 4 have been assessed as having chip-related technical expertise.
Specifically, President Koo joined SK Hynix’s predecessor Hyundai Electronics and held various positions, including Managing Director of the Future Technology Research Institute, Executive Director in charge of the Cheongju FAB, and Vice President of Manufacturing/Technology.
Hyeon Ahn was responsible for the NAND development planning group, the NAND development business strategy manager, and the future research promotion group manager.
The external directors are also impressive.
It is expected that the board will make more accurate management decisions based on a deep understanding and expertise in the chip industry.
In particular, SK Hynix also implements stock-linked compensation.
In addition to base salary and short-term performance bonuses, long-term performance incentives such as stock options, stock grants, performance share units (PSUs), and stock appreciation rights (SARs) are introduced for executives and employees, and part of the compensation for external directors is also provided in the form of stock.
This is a measure to incentivize performance and maximize it by aligning the company’s growth with individuals’ economic interests.
SK Hynix stated that the core of talent management is to help members grow and feel rewarded through fair evaluation and compensation, promote well-being, and encourage the shared growth of individuals and the organization through appropriate incentives.
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