{"id":1724,"date":"2024-10-21T06:00:49","date_gmt":"2024-10-21T06:00:49","guid":{"rendered":"http:\/\/localhost:8080\/semiconductor-101-sk-hynix-explains-why-tech-needs-chips\/"},"modified":"2026-07-29T14:55:02","modified_gmt":"2026-07-29T05:55:02","slug":"semiconductor-101-sk-hynix-explains-why-tech-needs-chips","status":"publish","type":"post","link":"https:\/\/news.skhynix.com\/en\/semiconductor-101-sk-hynix-explains-why-tech-needs-chips\/","title":{"rendered":"[Semiconductor 101] \u201cWhy\u201d Modern Tech Needs Semiconductors & SK hynix\u2019s Key Contributions"},"content":{"rendered":"<div class=\"post-intro\"><span style=\"color: #000000; font-size: 18px;\">Imagine a world without smartphones, computers, or the internet. It would be unthinkable for many to live without these essentials, but that would be the case without the engine behind these technologies and many others\u2014semiconductors. Despite the prevalence of these chips, their origins, usage, significance and more are still not widely known. Across six episodes, the Semiconductor 101 series will cover the <strong>who, what, when, where, why, and how<\/strong> of semiconductors to introduce the fundamentals of this crucial technology. <\/span><\/div>\n<p>Driving key technologies, intertwined with industries across the world, and an essential part of the AI era\u2014semiconductors are integral to daily life. This fifth episode in the <a href=\"https:\/\/news.skhynix.com\/tag\/semiconductor-101\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">Semiconductor 101 series<\/span><\/a> explores in detail why semiconductors are crucial for shaping modern society. The article also delves into why SK hynix is adapting its approach in the AI era and examines the sweeping influence of the semiconductor industry on the global economy.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15990 size-full\" title=\"[Semiconductor 101] \u201cWhy\u201d Modern Tech Needs Semiconductors &amp; SK hynix\u2019s Key Contributions\" src=\"https:\/\/d18r0a86za96sg.cloudfront.net\/wp-content\/uploads\/2026\/05\/27143323\/SK-hynix_Semiconductor-101-5-Why_01.png\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" alt=\"[Semiconductor 101] \u201cWhy\u201d Modern Tech Needs Semiconductors &amp; SK hynix\u2019s Key Contributions\" width=\"1000\" height=\"588\" \/><\/p>\n<div style=\"text-align: center;\">\n<div style=\"display: inline-block; max-width: 748px; width: 100%; text-align: left;\">\n<div style=\"height: 2px; background: #666666; margin-bottom: 6px;\"><\/div>\n<h3 class=\"sub-title\" style=\"margin: 0; line-height: 1.4;\">Why does the world need semiconductor memory?<\/h3>\n<div style=\"height: 2px; background: #666666; margin-top: 6px;\"><\/div>\n<\/div>\n<\/div>\n<p>Semiconductor memory is indispensable for modern technology, enabling efficient data storage and processing across a variety of devices. To gain a better understanding of semiconductor memory\u2019s importance, let\u2019s picture how its absence would impact some areas of life.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15991 size-full\" title=\"A world without semiconductor memory would be like stepping back in time\" src=\"https:\/\/d18r0a86za96sg.cloudfront.net\/wp-content\/uploads\/2026\/05\/27143328\/SK-hynix_Semiconductor-101-5-Why_02.png\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" alt=\"A world without semiconductor memory would be like stepping back in time\" width=\"1000\" height=\"658\" \/><\/p>\n<p class=\"caption\">\u25b2 A world without semiconductor memory would be like stepping back in time<\/p>\n<p><span style=\"text-decoration: underline;\"><strong>Work<\/strong><\/span><br \/>\nWithout semiconductor memory, workers would find tasks that once could be finished in a day would take weeks or even months to complete. Computers would be painfully slow and inefficient \u2014making opening and saving files a chore\u2014and offer significantly reduced <strong>storage<\/strong> <strong>capacity<\/strong>. <strong>Multitasking<\/strong> would also be inefficient, with noticeable delays when switching between applications like Word documents and web browsers.<\/p>\n<p>Other essential business applications such as <strong>video conferencing<\/strong>, <strong>cloud-based software<\/strong>, and<strong> messaging tools <\/strong>would be unreliable and costly, hindering collaboration and presenting huge obstacles to remote workers.<\/p>\n<p><span style=\"text-decoration: underline;\"><strong>Digital Entertainment<\/strong><\/span><br \/>\nPeople may struggle to fill their evenings and weekends as the entertainment on offer becomes severely limited. <strong>Online activities<\/strong> would be time-consuming or almost impossible without semiconductor memory, which enables networking equipment to manage and route data. <strong>Social media<\/strong> would be unrecognizable, as users would be unable to instantly share photos and videos. <strong>Streaming<\/strong>,<strong> gaming<\/strong>, and<strong> cloud services<\/strong> would also be unusable without fast and scalable storage solutions. <strong>Smartphones<\/strong> would not exist in their current form either, as high-performance and efficient memory is key to the functionality, compact size, and battery life of modern phones.<\/p>\n<p><span style=\"text-decoration: underline;\"><strong>Banking &amp; Finance<\/strong><\/span><\/p>\n<p><strong>Financial transactions<\/strong> would look very different in a world without semiconductor memory. It would be necessary to make frequent trips to the bank, as app-based transactions would be impossible. This would affect personal finances and the broader economy.<\/p>\n<div style=\"text-align: center;\">\n<div style=\"display: inline-block; max-width: 748px; width: 100%; text-align: left;\">\n<div style=\"height: 2px; background: #666666; margin-bottom: 6px;\"><\/div>\n<h3 class=\"sub-title\" style=\"margin: 0; line-height: 1.4;\">Why is semiconductor memory crucial for the AI era?<\/h3>\n<div style=\"height: 2px; background: #666666; margin-top: 6px;\"><\/div>\n<\/div>\n<\/div>\n<p>In the AI era, semiconductor memory plays a key role in ensuring the smooth operation of AI applications. Today\u2019s AI systems are performing advanced tasks such as image generation and problem solving which require significant data processing capabilities. Moreover, as these AI tools require ever-growing amounts of data to continue their evolution, there is a pressing need to manage this explosion of data. That\u2019s where semiconductor memory comes in.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-15992 size-full aligncenter\" title=\"Semiconductor memory offers several key features which support the smooth operation of AI\" src=\"https:\/\/d18r0a86za96sg.cloudfront.net\/wp-content\/uploads\/2026\/05\/27143333\/SK-hynix_Semiconductor-101-5-Why_03.png\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" alt=\"Semiconductor memory offers several key features which support the smooth operation of AI\" width=\"1000\" height=\"862\" \/><\/p>\n<p class=\"caption\">\u25b2 Semiconductor memory offers several key features which support the smooth operation of AI<\/p>\n<p>High-performance memory is essential for data storage, retrieval, and processing, enabling technologies to keep pace with the rapid rate of data generation. Let\u2019s break down some of the reasons why semiconductor memory is essential in the age of AI.<\/p>\n<ul>\n<li style=\"margin-bottom: 20px;\"><strong>Rapid Data Processing: <\/strong>AI systems must rapidly process vast amounts of data to make real-time decisions. Semiconductor memory supports this process by enabling fast data access and storage.<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul>\n<li style=\"margin-bottom: 20px;\"><strong>AI Training Support:<\/strong> AI applications are trained on large datasets to improve their performance. Memory products with high capacity and bandwidth can store and manage these datasets. Moreover, the rapid read\/write capabilities of memory solutions can accelerate AI training, making AI systems more efficient.<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul>\n<li style=\"margin-bottom: 20px;\"><strong>Energy Efficiency:<\/strong>\u00a0AI applications are resource intensive. Semiconductor memory helps reduce power consumption, making them more sustainable. Edge devices<sup style=\"color: #ff0000;\">* <\/sup>, such as smart sensors and mobile AI processors, depend on energy-efficient semiconductor memory to perform tasks like real-time image recognition while conserving battery life.<\/li>\n<\/ul>\n<p>\u00a0<br \/>\nAs AI continues to evolve and integrate into various technologies, semiconductor memory remains the key to unlocking its full potential.<\/p>\n<div style=\"text-align: center;\">\n<div style=\"display: inline-block; max-width: 748px; width: 100%; text-align: left;\">\n<div style=\"height: 2px; background: #666666; margin-bottom: 6px;\"><\/div>\n<h3 class=\"sub-title\" style=\"margin: 0; line-height: 1.4;\">Why is HBM an essential product for AI?<\/h3>\n<div style=\"height: 2px; background: #666666; margin-top: 6px;\"><\/div>\n<\/div>\n<\/div>\n<p>Featuring stacked DRAM<sup style=\"color: #ff0000;\">* <\/sup> chips, <strong>High Bandwidth Memory (HBM)<\/strong> is an ultra-fast memory technology which has become crucial in the age of AI. Combining high performance with low-power consumption, HBM can efficiently handle the growing demands of AI systems.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-15993 size-full aligncenter\" title=\"Combining high performance with low-power consumption, HBM is an essential AI memory product\" src=\"https:\/\/d18r0a86za96sg.cloudfront.net\/wp-content\/uploads\/2026\/05\/27143338\/SK-hynix_Semiconductor-101-5-Why_04.png\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" alt=\"Combining high performance with low-power consumption, HBM is an essential AI memory product\" width=\"1000\" height=\"618\" \/><\/p>\n<p class=\"caption\">\u25b2 Combining high performance with low-power consumption, HBM is an essential AI memory product<\/p>\n<p>To illustrate some of the benefits of HBM for AI compared to other DRAM products, think of it as an upgraded metro system that reduces passenger wait times at stops. Traditional DRAM chips have a limited number of data paths, akin to station entrances and exits, which are prone to bottlenecks in the data-centric AI era.<\/p>\n<p>Meanwhile, HBM features significantly more data paths which run vertically to support the smooth and rapid passage of data, just like passengers freely passing through a station with numerous entrances and exits. HBM\u2019s ability to minimize delays, or <strong>latency,<\/strong> is key in AI systems which need real-time data access to perform tasks such as deep learning.<\/p>\n<p>As touched upon in the previous question, AI systems handle massive datasets and complex computations. HBM supports these tasks by enabling swift and efficient <strong>data processing<\/strong>, making it ideal for AI training. For example, SK hynix\u2019s world\u2019s best-performing 12-layer HBM3E offers industry-leading data processing speeds of 1.18 terabytes (TB) per second.<\/p>\n<p>In addition, HBM is optimized for supporting <strong>parallel<\/strong> <strong>processing<\/strong> in AI systems due to its high bandwidth. As it offers high performance with low-power consumption, HBM also enables AI systems to <strong>operate efficiently<\/strong>, particularly in data centers and edge computing devices.<\/p>\n<div style=\"text-align: center;\">\n<div style=\"display: inline-block; max-width: 748px; width: 100%; text-align: left;\">\n<div style=\"height: 2px; background: #666666; margin-bottom: 6px;\"><\/div>\n<h3 class=\"sub-title\" style=\"margin: 0; line-height: 1.4;\">Why does SK hynix need to expand its semiconductor production capacity?<\/h3>\n<div style=\"height: 2px; background: #666666; margin-top: 6px;\"><\/div>\n<\/div>\n<\/div>\n<p>Today, phones instantly recognize faces, autonomous cars cruise down highways, and smart fridges can place orders for food. These developments are largely thanks to technologies such as AI, 5G, and Internet of Things (IoT) devices, which all require high-performance memory products. Moreover, the rapid growth of these and other advanced technologies is further heightening memory demand.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-15994 size-full\" title=\"The number of AI users is forecast to grow rapidly, heightening demand for semiconductor memory\" src=\"https:\/\/d18r0a86za96sg.cloudfront.net\/wp-content\/uploads\/2026\/05\/27143345\/SK-hynix_Semiconductor-101-5-Why_05.png\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" alt=\"The number of AI users is forecast to grow rapidly, heightening demand for semiconductor memory\" width=\"1000\" height=\"708\" \/><\/p>\n<p class=\"caption\">\u25b2 The number of AI users is forecast to grow rapidly, heightening demand for semiconductor memory<\/p>\n<p>Looking at the AI market alone, the number of <strong>AI users<\/strong> is projected to grow from almost 255 million in 2023 to around 730 million by 2030<sup style=\"color: #ff0000;\">* <\/sup>. In response to this changing technological landscape and resultant rising demand for memory, SK hynix is ramping up its production capacity. The company currently operates four production facilities in its home country of South Korea and plans to build two additional domestic facilities in the future, namely:<\/p>\n<ul>\n<li style=\"margin-bottom: 20px;\">The <a href=\"https:\/\/news.skhynix.com\/sk-hynix-board-approves-yongin-semiconductor-cluster-plan\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">Yongin semiconductor cluster<\/span><\/a> which will boost the company\u2019s production of AI memory<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul>\n<li style=\"margin-bottom: 20px;\">A fabrication facility (fab) in Cheongju which will produce next-generation DRAM products, including HBM<\/li>\n<\/ul>\n<p>\u00a0<br \/>\nWhile it may seem straightforward to simply build new manufacturing facilities to increase production, there are other aspects to consider. For example, there are often challenges associated with<strong> commercializing innovations<\/strong> through mass production.<\/p>\n<p>SK hynix is adept in this area, as the company has a long history of transitioning innovations from the R&amp;D stage through to high-volume manufacturing, particularly with DRAM and NAND flash<sup style=\"color: #ff0000;\">* <\/sup>. A recent example of this occurred in March 2024, when the company successfully mass-produced its 8-layer HBM3E through close client collaboration and enhancements in product design.<\/p>\n<div style=\"text-align: center;\">\n<div style=\"display: inline-block; max-width: 748px; width: 100%; text-align: left;\">\n<div style=\"height: 2px; background: #666666; margin-bottom: 6px;\"><\/div>\n<h3 class=\"sub-title\" style=\"margin: 0; line-height: 1.4;\">Why does the semiconductor industry have so much impact on the global economy?<\/h3>\n<div style=\"height: 2px; background: #666666; margin-top: 6px;\"><\/div>\n<\/div>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-15995 size-full aligncenter\" title=\"The value of the semiconductor market is greater than the GDP of numerous countries\" src=\"https:\/\/d18r0a86za96sg.cloudfront.net\/wp-content\/uploads\/2026\/05\/27143351\/SK-hynix_Semiconductor-101-5-Why_06.png\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" alt=\"The value of the semiconductor market is greater than the GDP of numerous countries\" width=\"1000\" height=\"788\" \/><\/p>\n<p class=\"caption\">\u25b2 The value of the semiconductor market is greater than the GDP of numerous countries<\/p>\n<p>Semiconductors are essential components in a multitude of electronic devices and are driving technological advancements, making the industry a cornerstone of the global economy. In 2023, the <a href=\"https:\/\/www.fortunebusinessinsights.com\/semiconductor-market-102365\/#:~:text=The%20global%20semiconductor%20market%20size%20was%20valued%20at%20USD%20611.35%20billion%20in%202023\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">semiconductor market was valued at around 611 billion USD<\/span><\/a>, greater than the <a href=\"https:\/\/data.worldbank.org\/indicator\/NY.GDP.MKTP.CD\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">GDP of Singapore<\/span><\/a>. However, the full extent of the semiconductor sector\u2019s impact on the global economy can only be understood when looking at some of the industries fueled by these chips.<\/p>\n<p>The <strong>consumer electronics<\/strong> market, which is <a href=\"https:\/\/www.statista.com\/outlook\/cmo\/consumer-electronics\/worldwide\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">valued at around 950 billion USD<\/span><\/a>, relies heavily on semiconductors. The market\u2019s size is emphasized by the fact that <a href=\"https:\/\/www.ericsson.com\/en\/reports-and-papers\/mobility-report\/key-figures\/#:~:text=Worldwide%20mobile%20subscriptions\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">global smartphone subscriptions have surpassed 6.9 billion<\/span><\/a>.<\/p>\n<p>The <strong>telecommunications<\/strong> sector, including the expected <a href=\"https:\/\/www.pwc.com\/gx\/en\/about\/contribution-to-debate\/world-economic-forum\/the-impact-of-5g.html\/#:~:text=This%20will%20result%20in%20$13.2%20trillion%20in%20global%20economic%20value%20by%202035\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">trillion-dollar 5G market<\/span><\/a>, also depends on semiconductors along with the <strong>automotive<\/strong> and <strong>healthcare<\/strong> industries. As previously mentioned, semiconductors are also key to <strong>advanced technologies<\/strong> such as AI, 5G, and IoT, highlighting their ubiquity in a wide range of high-value technology markets.<\/p>\n<p>While it has been established that the semiconductor sector is a multi-billion-dollar industry which creates immense direct revenue, it also contributes to the economy in other forms. In particular, the sector employs people across the world in roles such as R&amp;D, supply chain management, and manufacturing. By 2030, an estimated <a href=\"https:\/\/www.deloitte.com\/na\/en\/Industries\/tmt\/perspectives\/semiconductor-industry-outlook.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\">3 million employees will be needed in the sector<\/span><\/a>, highlighting its impact on <strong>jobs markets<\/strong> worldwide.<\/p>\n<p>Exploring semiconductor <strong>manufacturing<\/strong> in more detail, production is concentrated in East Asian countries such as Taiwan and South Korea. Slowdowns in production which contributed to global chip shortages throughout the years have further highlighted the sector\u2019s strategic importance to numerous industries across the world.<\/p>\n<p>Looking ahead, the semiconductor industry\u2019s impact on the global economy will only continue to grow as the sector itself, and others which rely on chips, expand in the future.<\/p>\n<p class=\"footnote\"><sup style=\"color: #ff0000;\">* <\/sup>Edge: The boundary of a network where data is generated and processed locally on devices or sensors, rather than being transmitted to a centralized data center.<br \/>\n<sup style=\"color: #ff0000;\">* <\/sup>Dynamic Random-Access Memory (DRAM): A type of short-term computer memory that stores data temporarily while a device is on, losing information when the power is turned off.<br \/>\n<sup style=\"color: #ff0000;\">* <\/sup>Statista, \u201cGenerative artificial intelligence (AI)\u201d report (2024)<br \/>\n<sup style=\"color: #ff0000;\">* <\/sup>NAND Flash: A long-term storage technology that retains data even when the power is off, commonly used in USB drives and memory cards.<\/p>\n<p><strong>The final episode of the Semiconductor 101 series will explore \u201chow\u201d semiconductors are made and provide insights on launching and advancing a career in this dynamic industry.<\/strong><\/p>\n<p><span style=\"text-decoration: underline;\"><a href=\"https:\/\/news.skhynix.com\/tag\/semiconductor-101\/\">Read more articles from the Semiconductor 101 series<\/a><\/span><\/p>\n<p><a href=\"https:\/\/linkedin.com\/showcase\/skhynix-news-and-stories\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-15776 aligncenter\" src=\"https:\/\/d18r0a86za96sg.cloudfront.net\/wp-content\/uploads\/2026\/05\/27140448\/SK-hynix_Newsroom-banner_1-1.png\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" alt=\"\" width=\"800\" height=\"135\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Imagine a world without smartphones, computers, or the internet. It would be unthinkable for many to live without these essentials, but that would be the case without the engine behind these technologies and many others\u2014semiconductors. Despite the prevalence of these chips, their origins, usage, significance and more are still not widely known. Across six episodes, [\u2026]<\/p>\n","protected":false},"author":23,"featured_media":1717,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_migrated_source_id":15986,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[5],"tags":[675,14,51,13,64,861,967],"class_list":["post-1724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-and-ai","tag-ai-era","tag-ai-memory","tag-dram","tag-hbm","tag-nand-flash","tag-semiconductor-101","tag-semiconductor-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/posts\/1724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/comments?post=1724"}],"version-history":[{"count":5,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/posts\/1724\/revisions"}],"predecessor-version":[{"id":11661,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/posts\/1724\/revisions\/11661"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/media\/1717"}],"wp:attachment":[{"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/media?parent=1724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/categories?post=1724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.skhynix.com\/en\/wp-json\/wp\/v2\/tags?post=1724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}