SK hynix has established a dedicated organization named “AI Infrastructure” (AI Infra) to strengthen its competitiveness in the high bandwidth memory (HBM) business, a high-value product segment. The AI Infra organization is led by Vice President Kim Joo-sun, who previously headed the Global Sales & Marketing (GSM) organization. This appointment reflects the importance of customer collaboration in the HBM business.
On Dec. 7, following a board report, SK hynix announced organizational restructuring and executive personnel changes for 2024. The company stated, “We aim to lead innovation in line with customer needs and trends by enhancing AI technology competitiveness,” regarding the establishment of the AI Infra organization.
Under AI Infra, two new groups were formed: HBM Business, consolidating scattered HBM capabilities and functions within the company, and AI&Next, tasked with exploring new AI markets, including the next-generation HBM. Additionally, the existing GSM organization responsible for communicating with HBM customers was integrated into AI Infra.
Vice President Kim will head the AI Infra division. His promotion from leading GSM signifies his responsibility for the critical HBM business segment. The decision to have a non-technical GSM leader at the forefront of the HBM business is influenced by the product’s characteristics.
Typically, memory semiconductors are developed by suppliers, mass produced, and sold as general-purpose products. In contrast, HBM is a customized product developed to meet specific customer needs. This underscores the significance of Vice President Kim’s experience in building customer trust.
SK hynix is a key supplier to Nvidia, which holds a 90% market share in the AI-based graphics processing unit (GPU) market. The close collaboration with Nvidia since the early stages of the HBM business has allowed SK hynix to split market leadership with Samsung Electronics, distinguishing itself as a top contender.
Market analysts predict that Nvidia’s dominance in the GPU business may continue for the next 2-3 years. This presents a significant opportunity for SK hynix to boost its performance. Market research firm Gartner forecasts that the global HBM market size will increase from US$3.319 billion next year to US$5.177 billion by 2027.