SK Hynix Inc. is shutting down its image sensor business to concentrate on developing premium artificial intelligence memory chips, the company announced to employees Thursday.
The South Korean memory giant plans to reassign hundreds of workers from its CMOS image sensor (CIS) division to its AI memory operations, redirecting resources toward high-growth segments where the company already holds a competitive advantage.
SK Hynix has struggled to gain traction in the image sensor market since entering in 2007, despite establishing a dedicated R&D center in Japan and launching its Black Pearl brand. The sector remains dominated by Sony Semiconductor Solutions, which holds a 45% market share, and Samsung Electronics with 19%.
Instead, the company will leverage its position as the global leader in high-bandwidth memory (HBM), crucial components for AI applications including servers and advanced computing systems. As Nvidia Corp.’s primary HBM supplier, SK Hynix plans to deliver its most advanced 12-layer HBM4 chips six months ahead of schedule, targeting late 2025 rather than early 2026.
The company said its experience in logic semiconductor design and customized product development from the image sensor business will strengthen its AI memory chip capabilities as it positions itself at the forefront of the rapidly expanding AI chip market.
