SK Telecom, SK Square and SK hynix launch the “SK ICT Alliance” for synergies
With the aim of securing global competitiveness in various ICT fields such as semiconductors, 5G and AI, the three companies plan to conduct joint business activities in the global market by leveraging the innovative investment of SK Square, AI and 5G technologies from SK Telecom and the future of SK hynix. semiconductor technologies.
From January 2022, the three companies will operate a âSynergy Councilâ chaired by the vice-president Jung Park-ho, and joined by young ryu-sang, CEO of SK Telecom, and Lee seok-hee, CEO of SK hynix. The Synergy Council will be the highest decision-making body, where leaders will discuss R&D cooperation and joint investments in semiconductor and ICT fields, and promote the expansion of the global market.
- Increase the presence of the AI ââsemiconductor developed by SK Telecom, SAPEON
SK Telecom, SK Square and SK hynix will first create synergies by introducing SK Telecom’s AI SAPEON * chip to the global market. The three companies will jointly invest to establish SAPEON Inc. in the United States and enter the global AI semiconductor market.
* SAPEON is the self-developed AI chip from SK Telecom launched in November 2020. Although it is about half the price of a graphics processing unit (GPU), its deep learning computation speed is 1, 5 times faster and it uses 20% less power than the GPU.
SK Telecom plans to lead the development of technologies related to SAPEON by leveraging its R&D capabilities and accumulated service experience in 5G and AI. In the medium and long term, the company will extend its range of SAPEON models by developing AI chips dedicated to data centers and autonomous driving.
SK Telecom will also promote synergies between its AI semiconductor and SK hynix semiconductor memory technologies, while attracting strategic and financial investors in cooperation with SK Square.
SAPEON Inc. will serve as an outpost to expand AI semiconductor business into the global market by attracting large US-based technology companies as major customers. It will also secure an advantage by attracting experts in semiconductor development and attracting outside investors. In addition, as a subsidiary of SAPEON Inc., SAPEON Korea will take over the activities in Korea and the Asian region.
Predicting that the convergence of AI and metaverse will define the future world of ICT, SK Telecom plans to innovate its three key services, T Universe, Ifland and AI Agent, on an accelerated basis. Moreover, it will also introduce new services by adding connected intelligence to future devices such as UAM planes, self-driving cars and robots.
“By proactively responding to the changes occurring in the areas of AI, metaverse and 5G, we will prepare for the next decade,” said young ryu-sang, CEO of SK Telecom.
- Creation of ICT investment capital of more than 1000 billion KRW
SK Telecom, SK Square and SK hynix plan to establish a base to make overseas investment this year and attract investment from foreign financial investors to create and operate a total investment capital of more than 1000 billion KRW. Detailed investment discussions are already underway with leading global investors.
With this investment capital, the three companies will actively invest in companies with innovative technologies such as AI, metaverse, blockchain and semiconductors.
Through these investment activities, they will be able to stay ahead of the convergence trend within the ICT industry and discover unicorns that can change the industrial landscape, which will lead to valuable business synergies.
SK Telecom and SK hynix will be able to strengthen business partnerships with companies in which they have invested or even gain an advantage in acquiring these companies in the future. SK Square expects to establish a good track record as an investment firm, while increasing its enterprise value.
According to market research firm Mergermarket, the size of the global buyout market has reached approximately KRW 1,400,000 billion ($ 1,172 billion) in 2021, approximately twice as many as the previous year. Industries are quickly reorganized through mergers and acquisitions between global companies, and those that fail to keep up with this trend are left behind by the competition.
- SK hynix will increase its presence in the global market thanks to its âInside Americaâ strategy
SK hynix aims to become a leading global technology company leading the rapidly evolving ICT industry.
Recently, the semiconductor market has seen more diverse demand from industries such as AI, autonomous driving and metaverse, and pluralization is taking place in the area of ââsystem architecture like CPU, GPU and MPU. As the competition law in force no longer applies to this market, it is imperative for companies to develop new economic models and new technologies to remain competitive.
With the acquisition of Intel’s NAND and SSD business, SK hynix is âânow poised to strengthen the competitiveness of its NAND flash business. The company also aims to break away from its current role as a semiconductor supplier and become a company that leads future technologies with global ICT companies.
In addition, SK hynix will implement its âInside Americaâ strategy in the United States, the world’s largest ICT market and battleground, to improve its business competitiveness and expand into new partnerships. It will also establish a new business unit and R&D center in the United States. Based on the competitiveness of SK hynix, the three companies plan to strengthen their collaboration with global ICT companies.
âSK hynix will take a leap forward to become a leading global technology company by delivering more innovative technologies and products and creating value for society and humanity,â said Lee seok-hee, CEO of SK hynix.
At the same time, SK Square plans to accelerate the creation of synergies between the three companies by making innovative investments. In response to SK hynix’s moves towards expanding the global market and developing new technologies, SK Square will make joint investments in the semiconductor ecosystem. At the same time, it will increase its investments in platforms that will stimulate future innovations such as the metaverse and blockchain.
SK Square will also enter the new global blockchain market by leveraging Korbit, a virtual asset exchange it recently invested in, and creating a blockchain-based economic system in collaboration with the metaverse platform of SK Telecom, Ifland.
âThis year, the SK ICT Alliance will join forces to achieve new innovations and take a big step forward in the global market,â said Jung Park-ho, vice president and CEO of SK Square and SK hynix. “As leading players in the global semiconductor and ICT industries, we will also do our best to contribute to the Korean economy.”
About SK Telecom
SK Telecom (NYSE: SKM) is Korea’s leading ICT company, driving innovations in fixed and wireless telecommunications, AI services, and digital infrastructure services. Armed with cutting-edge ICTs, including AI and 5G, the company is ushering in a new level of convergence to deliver unprecedented value to its customers. As a global 5G pioneer, SKT is committed to harnessing the full potential of 5G through revolutionary services that can improve people’s lives, transform businesses, and lead to a better society.
SKT claims unparalleled leadership in the Korean mobile telephony market with more than 30 million subscribers, which represents nearly 50% of the market.
For more information please contact [emailÂ protected] or visit our LinkedIn page www.linkedin.com/company/sk-telecom.
About SK hynix Inc.
SK hynix Inc., headquartered in Korea, is the world’s leading semiconductor supplier of dynamic random access (“DRAM”) memory chips, flash memory chips (“NAND Flash”), and sensors image CMOS (“CIS”) image for a wide range of distinguished customers around the world. The shares of the Company are traded on the Korea Stock Exchange and the shares of Global Depository are listed on the Luxembourg Stock Exchange. More information on SK hynix can be found at www.skhynix.com, news.skhynix.com.
SOURCE SK Telecom