SK hynix CEO Kwak Noh-jung: “Let’s Open a New 25 Years by Exploring the Future Together on the Basis of Trust”

SK hynix held its '2026 Partners Day' on the 28th to mark the 25th anniversary of the launch of its Co-Growth Council and reviewed the results of 25 years of win-win cooperation with its suppliers. The event was organized to highlight the trust and win-win values built with suppliers and to share new cooperation models.

At the event, SK hynix presented a new co-growth model for the next 25 years. Kwak Noh-jung, CEO of SK hynix, said he hoped to open a new 25 years by exploring a shared future on the basis of trust.

The event was attended by Kwak Noh-jung, CEO of SK hynix; Cha Seon-yong, head of the Future Technology Institute and CTO; and Lee Byeong-gi, head of mass production and CPO, along with SK hynix's top executives and working-level officers, as well as member companies of the Co-Growth Council and outstanding suppliers by sector. With representatives from about 100 companies in attendance, the 'One-Team' bond between SK hynix and its suppliers was reaffirmed.

The event opened with a welcome address by Vice President Kang Yu-jong, head of procurement, followed by a presentation from Vice President Lee Hyeon-cheol, who oversees procurement strategy, on expanding win-win programs.

Next, Park Seok-jung, head of the Macro Research Center, spoke on the theme of 'Global Macroeconomic Outlook and Survival Strategies for the Semiconductor Supply Chain,' sharing the tasks of building a stable supply chain amid a rapidly changing external environment.

An event marking the 25th anniversary of the Co-Growth Council followed, with a video showing the journey from the council's launch to the present. Plaques of merit were also presented to former chairmen and owners of the council's holding companies, and former chairmen were appointed honorary chairmen.

Finally, Kwak Noh-jung presented a plaque commemorating the 25th anniversary to Hwang Cheol-ju, chairman of the Co-Growth Council, and expressed his gratitude for the time spent with suppliers. Awards were then given to suppliers that delivered outstanding results last year, with a total of 11 outstanding suppliers recognized in four categories: technological innovation, quality improvement, co-growth, and ESG.

Kwak said the fact that the two sides had supported each other for the past 25 years was the background behind SK hynix's growth into a global company leading the AI era. He also said the company would pursue a new 25 years of greater leaps forward by exploring a shared future based on accumulated trust.

In line with that, SK hynix presented its core direction for future co-growth cooperation. The core direction proposed by the company is a customized support system by supplier growth cycle.

SK hynix divided the supplier growth process into four stages and decided to strengthen the support programs needed at each stage. The four stages of supplier growth are technology development, testing and verification, mass production, and sales.

In particular, at the technology development stage, the company plans to select and nurture promising suppliers as technology innovation companies. It also plans to provide intellectual property and samples for technology development.

In addition, SK hynix decided to newly introduce an 'R&D Challenge Reward System.' Through this, it will strengthen support at the technology development stage.

SK hynix is operating the R&D Challenge Reward System as a structure to reduce the burden on suppliers and increase participation in technology development. The system aims to ease suppliers' initial funding burden, reduce losses from failed technology development, and encourage active technology development. Initial development costs are advanced by up to 50%, and even if technology development fails, post-settlement is made; even if it is not linked to actual purchases, post-settlement is made. The criteria for post-settlement reflect technical performance and contribution.

To support verification in real-world environments, SK hynix provides a test bed during the testing and verification stage for technologies developed by suppliers. It also supports precision analysis and reliability evaluation through its analysis and measurement support center. In addition, it operates a performance evaluation project, introducing developed products into SK hynix's actual production lines to verify yield and reliability.

A 'Trinity Fab,' a process demonstration environment, is under construction in the future Yongin semiconductor cluster. It will cover about 3,300 square meters (1,000 pyeong), and the target opening is in 2027. Once the Trinity Fab begins operations, suppliers will be able to directly verify technologies they have developed in a mass-production-level process environment that would otherwise be difficult to secure individually. This is expected to allow problems to be identified in advance and corrected before applying the technologies to actual production lines.

SK hynix will divide supplier support into production and sales stages. Support targets at the mass production stage include facility investment and production capability, and necessary funds will be provided at low interest rates through the Co-Growth Fund. The scope of the supplier consulting program has been expanded to second- and third-tier suppliers, and the company said it will also work together to resolve the management difficulties they face.

In the sales stage, the win-win payment system will continue to be operated. In addition, the size of the payment support fund for suppliers will be expanded from KRW 50 billion to KRW 100 billion. The company said it plans to double the payment support fund to help suppliers maintain stable cash flow.

SK hynix and the Co-Growth Council have continued win-win cooperation for 25 years. Both sides have raised joint funds every year and continued donations on the occasion of Partners Day. This year's donation amounts to KRW 120 million, which was delivered to the Salvation Army Korea Territory.

The donated funds will be used for education and living expenses for young adults preparing for independence after leaving orphanages. A gratitude event marking the 25th anniversary was also held.

The gratitude event was carried out through direct visits to suppliers' sites. The visit period ran from Aug. 25 to Sept. 18, and SK hynix visited member companies' sites in succession with a coffee truck. The recipients of the appreciation were a total of 23,125 supplier employees.

The cooperation between SK hynix and the Co-Growth Council began in 2001, when SK hynix and 79 outstanding suppliers launched the 'Hynix Council.' The launch of the Hynix Council became the catalyst for SK hynix and the Co-Growth Council to begin cooperation. Later, during the management crisis in 2008, they jointly took part in overcoming the crisis through measures such as wage deferrals, and in 2012 the company became part of SK Group.

This flow continued in 2014 when it was reorganized into the Co-Growth Council. After the 2014 reorganization, major co-growth policies and programs were rolled out in earnest. SK hynix has continued to support the nurturing of talent at its suppliers.

Currently, SK hynix operates 'Youth Hy-Five' to link recruitment, training, and internship activities for outstanding talent at its suppliers. It also runs the 'Semiconductor Academy' to help improve the job skills of supplier employees and operates the 'Semiconductor Win-Win CEO Seminar' for supplier executives. SK hynix said supplier capabilities are the most important factor determining its own technological competitiveness, and stated that it will pursue stronger supplier competitiveness through a customized win-win model by growth cycle and, based on that, push ahead with completing a sustainable domestic semiconductor ecosystem.

Source: TECHWORLD · Park Kyu-chan
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407530

References

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