Various news agencies reporting that SK hynix is exiting the CIS business to focus on AI.
Amid the AI-driven HBM boom, SK hynix is exiting its non-core CMOS image sensor (CIS) business, according to ZDNet and Edaily.
The ZDNet report suggests that SK hynix used to supply CMOS sensors for Samsung’s Galaxy Z3 and Chinese smartphones, but struggled to expand due to weak market demand and rising competition from Chinese newcomers.
According to SK hynix, its CIS division, launched in 2007, gained expertise in logic semiconductors beyond memory. However, the company decided to shift resources from CIS to AI memory to strengthen its AI-focused strategy, as per ZDNet.
Another report from fnews notes that SK hynix entered the image sensor market in 2008 by acquiring Silicon File. In 2019, it established a CIS R&D center in Japan and launched the “Black Pearl” sensor brand.
However, while trailing behind Sony and Samsung on the CIS business, SK hynix has been gradually downsizing the division, according to Edaily.
In late 2024, the company placed its CIS development team under the Future Technology Research Institute amid ongoing discussions about the business’s declining profitability, the Edaily report indicates.
https://www.thelec.net/news/articleView.html?idxno=5177
SK Hynix is existing the CMOS image sensor (CIS) business, TheElec has learned.
The company will instead focus fully on AI memory products. Those working at its CIS business unit will be transferred to teams working on high-bandwidth memory (HBM).
In a recent internal communication event with employees, SK Hynix said the AI era has come and that the company has achieved “great results” in the AI memory sector.
The company was in the middle of a “great transition” to become a core AI company, SK Hynix told employees.
Technology and expertise that its CIS business unit will be crucial in solidifying its position as a global AI company, SK Hynix added.
SK Hynix started its CIS business in 2007 and since then attempted to expand its market share in the mobile market. But the unit continued to mark low profitability and its existence was always questioned.
In its year’s end reshuffle lats year, the business unit was moved to be under the supervision of the Future Technology Lab. These teams are more research oriented than teams under the supervision of the CEO.
SK Hynix CEO Kwak Noh-jung was also known to be strongly in favor of continuing the CIS business unit prior to the exit.
The company, during the vent, also said it plans to become a full stack AI memory provider.
AI is eating the world.
ReplyDelete'SK Hynix has been gradually downsizing the division': same is happening @onsemi.
ReplyDeleteDuring the latest RIF, ~30% of ISG was let go.