SK Hynix is pivoting its strategy to capitalize on the booming artificial intelligence market, doubling down on high-bandwidth memory (HBM) while scaling back less profitable ventures. The South Korean chipmaker is slashing its CMOS image sensor (CIS) production capacity by more than half compared to last year, now estimated at under 7,000 12-inch wafers monthly.
Industry sources reveal that SK Hynix is reallocating resources from its system-on-chip design division to the HBM department, signaling a clear shift towards AI-centric memory solutions. The company is also reportedly recruiting talent to develop next-generation memory with computational capabilities.
The move comes as HBM prices soar to 3-5 times that of standard DRAM, according to TrendForce. While general DRAM and NAND prices are expected to decline in Q4, HBM prices are projected to rise by 8-13%.
SK Hynix’s CIS business, which held only a 4% market share last year, has struggled to gain traction against industry leaders Sony and Samsung Electronics. By contrast, insiders suggest HBM production lines can achieve return on investment in as little as three months, making it an attractive focus for the chipmaker’s resources.
