SK Hynix is withdrawing from its non-core CMOS image sensor (CIS) business. Observers have noted that declining market demand and the entry of latecomers from China have affected the feasibility of the business.
On March 6, during a CIS division member exchange event, SK Hynix announced, “To strengthen our position as a global AI-centric company, we will transfer the division’s capabilities to the AI memory sector.”
SK Hynix stated, “Since its establishment in 2007, the CIS division has overcome numerous challenges to enter the mobile market and has achieved the expected results. Through this, we have acquired logic semiconductor technology and custom business capabilities that cannot be achieved solely through memory.”
The company continued, “With the recent arrival of the AI era, we have made significant progress in the AI memory sector and are now at a major turning point toward becoming a core AI industry company.” SK Hynix explained, “The technology and experience possessed by the CIS business unit are crucial for strengthening our AI memory competitiveness, so we made this decision to consolidate the company’s overall capabilities.”
SK Hynix entered the image sensor market in 2008 through the acquisition of CIS developer Siliconfile. In 2019, the company established a CIS R&D center in Japan and launched the “Black Pearl” image sensor brand that same year.
Despite achieving results such as supplying CIS for Samsung Electronics’ foldable smartphone series ‘Galaxy Z3’ and Chinese smartphones, the company was unable to significantly expand its business. This has been interpreted as being due to declining demand in the smartphone market and competition from emerging Chinese players.
SK Hynix stated, “We expect this decision to further enhance our competitiveness in AI memory and solidify our position as a ‘full-stack AI memory provider,’” adding, “We also aim to maximize shareholder value through this move.”
Regarding the transition process for executives and employees, the company explained, “We will spare no effort in providing support under the ‘one team mindset’ so that current CIS members can fully demonstrate their expertise as they integrate into the new organization.”
Source: SK Hynix
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