SK Hynix CEO Kwak Noh-jung Emphasizes Semiconductor Industry's Crucial Role in AI Evolution

SK hynix CEO Kwak Noh-jung says 'stakes are high' in AI evolution

Kwak Noh-jung, chief executive officer (CEO) of SK hynix, delivers a speech during Semicon Korea 2025 in this picture from his LinkedIn account. Yonhap Kwak Noh-jung, chief executive officer (CEO) of SK hynix, has emphasized the critical role of Korea's semiconductor industry, saying "stakes are high" in the face of rapidly evolving artificial intelligence (AI). "Reflecting on my time at Semicon Korea 2025, I'm reminded of the immense responsibility we carry as an industry," Kwak wrote on his LinkedIn account Thursday. "As AI continues to evolve, it's evident that the stakes are higher than ever." The posting came after Kwak highlighted the "crucial role" of semiconductors in global economies and national security in a speech delivered Wednesday at a leadership dinner of Semicon Korea 2025, an annual trade show that kicked off earlier that day in Seoul, bringing together some 500 global chipmakers, equipment providers and material suppliers. During the event, Kwak has met with industry leaders, including Luc Van den hove, CEO of imec, a European chip research center, and Dirk Beljaarts, the Netherlands' minister of economic affairs. " Korea experienced an unprecedented downturn and is now facing a big wave drive by the rise of AI," he told reporters after the leadership dinner. "I think Korea will get on the wave well." Under Kwak's leadership, SK hynix has successfully capitalized on the AI boom, particularly with its high bandwidth memory (HBM), a key component for graphic processing units (GPUs). The chip giant has played a pivotal role in the HBM-GPU supply chain led by Nvidia Corp. and Taiwan Semiconductor Manufacturing Company (TSMC). (Yonhap)

SK Hynix CEO sees greater opportunities for semiconductor industry amid DeepSeek's impact

SK Hynix CEO Noh-Jung Kwak, reflecting on the emergence of China's DeepSeek, predicts that the generative AI model will ultimately have a positive impact on the semiconductor industry in the long run. According to a report by ET News, Kwak recently addressed questions regarding DeepSeek's influence on the industry. While he refrained from discussing specific products, he acknowledged that while there may be short-term fluctuations, the model will play a significant role in driving the adoption of AI. Kwak emphasized that AI is set to expand across industries and society, which will, in the long term, stimulate semiconductor demand and create new opportunities. Some analysts have previously speculated that DeepSeek, with its cost-efficient approach, could slow demand for high-bandwidth memory (HBM), potentially affecting South Korea's memory chip industry, including SK Hynix. However, Kwak's remarks suggest otherwise. He believes DeepSeek will accelerate AI adoption, and as global tech giants intensify their competition, they will continue investing in AI innovation. As a result, HBM demand is expected to remain strong in the medium to long term. Regarding the struggling NAND Flash market, Kwak noted that the entire industry is working to stabilize the sector, with recovery anticipated by the end of 2025. Meanwhile, in the DRAM segment, reports suggest that NVIDIA is promoting a new AI PC-oriented DRAM module called "SOCAMM." Kwak stated that as AI semiconductors diversify into GPU, TPU, and other segments, DRAM applications will also become more varied. Customers will assess performance and cost-effectiveness when making their decisions. Additionally, Kwak is set to step down as chairman of the Korea Semiconductor Industry Association by the end of February 2025. His successor will be Jai-Hyuk Song, Chief Technology Officer (CTO) of Samsung's Device Solutions (DS) division.