Global semiconductor demand experienced a remarkable resurgence in 2024, driven by a wave of AI-powered innovation. In response, fabs cranked up production to deliver chips that could handle the immense computing needs of next-generation technologies.
Amid this whirlwind of progress, SK hynix stood out as a market leader. Throughout the year, the company not only overcame challenges but also played a crucial role shaping the future of the semiconductor industry. This article revisits SK hynix’s eight biggest stories of the year with insights from executives, highlighting the company’s progress in AI memory, business investments, sustainability, and more.
1. Investment Milestone: Advanced Chip Packaging Plant Deal in Indiana for Next-Gen AI Memory
SK hynix announced in April that it will invest USD 3.87 billion to establish an advanced packaging facility in Indiana, U.S. The plant will house a leading production line to mass-produce next-generation HBM1 as well as future generations of chips. Once completed, the project is set to strengthen the U.S. semiconductor supply chain and address the global surge in demand for AI memory products.
1High Bandwidth Memory (HBM): A high-value, high-performance memory that vertically interconnects multiple DRAM chips using through-silicon via (TSV).
In August, momentum for the project intensified when SK hynix signed a memorandum of terms with the U.S. Department of Commerce, securing access to significant funding and other financial incentives. This initiative underscores the company’s commitment to establishing a new hub for AI technology.
“We are excited to become the first in the industry to build a state-of-the-art advanced packaging facility for AI products in the U.S. This plant will help strengthen supply-chain resilience and advance our goal of providing AI memory chips with unmatched capabilities,” stated CEO Kwak Noh-Jung.
Learn more about the Indiana investment →
2. Pushing Boundaries: Mass Production of the World’s First 12-Layer HBM3E
Since launching the world’s first HBM in 2013, SK hynix has consistently pushed the boundaries of memory performance with each new iteration. In September 2024, SK hynix marked another milestone in its HBM journey as it began mass production of the world’s first 12-layer HBM3E. Boasting the highest capacity of any existing HBM—36 GB—along with industry-leading speed, the 12-layer HBM3E is optimized to meet the growing demands of AI applications.
Commenting on the announcement which became the most-viewed story on the newsroom in 2024, President Justin Kim, head of AI Infra, emphasized the importance of the breakthrough.
“SK hynix has once again broken through technological limits, demonstrating our industry leadership in AI memory. We will continue our position as the No.1 global AI memory provider as we steadily prepare next-generation memory products to overcome the challenges of the AI era,” he said.
Building on this momentum, the company is now developing the 16-layer HBM3E, promising even greater bandwidth and paving the way for further AI advancements.
Read more about the 12-layer HBM3E →
3. Empowering Growth: Yongin Semiconductor Cluster Investment Plan
The Yongin Semiconductor Cluster is poised to become a cornerstone of SK hynix’s long-term growth, as it looks to meet increasing demand for AI memory. In July, the company committed approximately KRW 9.4 trillion (USD 6.7 billion) to the construction of the project’s first fab and business facilities. In total, SK hynix will construct four fabs for next-generation semiconductors and a semiconductor cooperation complex at the site, which will ultimately serve as a global AI semiconductor production base.
Vice President Kim Young-sik, head of Manufacturing Technology, emphasized the cluster’s vital role in the company’s future.
“The Yongin Cluster will be the foundation for SK hynix’s mid- to long-term growth and a place for innovation, while dramatically enhancing South Korea’s semiconductor technology and ecosystem competitiveness,” he said.
The first fab will focus on producing advanced DRAM, including HBM, with an additional “mini-fab2” planned to support small local businesses’ technological development.
2Mini-fab: Research facility equipped with 300mm wafer processing equipment to demonstrate semiconductor materials, parts, and equipment.
Explore the Yongin Semiconductor Cluster plans →
4. Strengthening SSD Portfolio: Developing PEB110 for Data Centers
In September, SK hynix enhanced its SSD portfolio with the development of a high-performance SSD for data centers, PEB110. This groundbreaking SSD builds on the company’s 238-layer 4D NAND technology, offering twice the performance and over 30% greater power efficiency than the previous generation. As demand for cutting-edge SSD solutions accelerates in AI and big data applications, PEB110 is designed to meet the needs of large-scale cloud computing and data centers.
“Looking ahead, we are on track to proceed with customer qualification and volume production to solidify our position as the No. 1 global AI memory provider in the ever-growing SSD market for data centers,” Ahn Hyun, head of the N-S Committee, noted.
Following the company’s success with ultra-fast DRAM products, the announcement solidifies its position as a leader in NAND solutions.
Discover more details about the PEB110 →
5. Revolutionizing Storage: Mass Production of the Industry’s First 321-layer NAND
Continuing its track record of innovation, SK hynix announced in November it had begun mass- producing the world’s first 321-layer 4D NAND flash. The achievement, which marks the first time a company produced a NAND flash solution with more than 300 layers, follows SK hynix’s significant breakthrough in stacking technology. Delivering enhanced speed and power efficiency compared to the previous generation, the 321-layer NAND flash meets the growing demands of AI applications.
The accomplishment strengthens the company’s position in the AI storage market, particularly in SSDs for AI data centers and on-device AI applications.
“SK hynix is on track for continued growth by adding a perfect portfolio in the ultra-high performance NAND space on top of the DRAM business led by HBM,” said Vice President Jungdal Choi, head of NAND Development.
Find out more information about the 321-layer NAND →
6. Sustainable Success: Winning the IFR Asia Award for Innovative Bond
SK hynix picked up a prestigious IFR Asia Award in April, winning the Best ESG Bond prize for its innovative USD 2.5 billion triple-tranche combination trade. Featuring a sustainability-linked note that targets a reduction in greenhouse gas emissions and a green bond that funds environmental projects, the triple-tranche bond supports the company’s efforts to reach its sustainability goals.
“The green bond, in particular, funds environmental innovations such as increased product energy efficiency, improved wastewater management, and pollution reduction,” said Hyungmo Yang, head of Financial Management. “Going forward, the bond’s proceeds will continue to help us meet our environmental goals.”
By integrating sustainability into its financial practices, SK hynix is addressing the rising demand for investments that deliver both economic returns and environmental benefits.
7. Enhancing Shareholder Value: 25% Dividend Hike in New Return Program
In November, SK hynix demonstrated its commitment to delivering value to shareholders by announcing a 25% increase in the annual fixed dividend—the minimum dividend per share that the company plans to pay out every year. The increase, which takes the dividend up to KRW 1,500 (USD 1.06) a share from KRW 1,200, is part of a new shareholder return program for the 2025–27 period.
The enhanced program aims to meet the expectations of shareholders who have supported the company on its path to becoming the global leading AI memory provider.
“Our goal is to promote the company’s long-term prosperity together with our shareholders by carrying out the policies for shareholder return that matches the company’s growth and stability of the financial structure,” Vice President and Chief Financial Officer Kim Woohyun commented.
Separately, the company also unveiled an initiative aimed at increasing corporate value by enabling quick decision-making in response to market changes.
Learn more about the shareholder return program →
8. Commitment to ESG: Unveiling the Recycled Materials Roadmap
As part of its ongoing commitment to ESG, SK hynix introduced a bold roadmap in February to increase the proportion of recycled and renewable materials in semiconductor production. Through this industry-first mid- to long-term plan, the company will first target replacing essential metals for semiconductors with recycled materials before focusing on recycled plastics.
“As a company that takes ESG management seriously, we intend to actively participate in the establishment of a global circular economy,” said Vice President Junho Song, head of Advanced Quality & Analysis. “While implementing this roadmap, we will work together with all stakeholders in the semiconductor supply chain, including customers and suppliers, to achieve practical results.”
This forward-looking roadmap not only highlights SK hynix’s recent success in sustainable innovation but also reinforces its vision for the future. As the company leads the charge in integrating sustainability with technological advancement, it sets a compelling example of how the semiconductor industry can shape a greener, more resilient future.
See the full sustainable materials roadmap →
Continuing the Journey of Excellence in 2025
In 2024, SK hynix achieved new heights through technological breakthroughs, strategic investments, and sustainable innovation. These accomplishments not only solidified the company’s leadership in AI memory but also positioned it at the forefront of emerging fields. Looking ahead to 2025, SK hynix is set to continue its journey of excellence, shaping the next generation of cutting-edge technology and powering the innovations of tomorrow as a full stack AI memory provider.
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