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SK hynix Cheongju Plant Entrance (Photo Credit: SK hynix) |
[Alpha Biz= Kim Jisun] SK hynix has decided to exit the CMOS Image Sensor (CIS) business after 18 years. The company will transition its CIS developers, numbering in the hundreds, to other divisions.
The decision comes as part of SK hynix's strategy to focus on more profitable sectors, such as high-bandwidth memory (HBM) and artificial intelligence (AI) memory products, leaving behind the low-margin CIS business.
On March 6, SK hynix communicated this change during an internal event with its CIS division employees. As a result, hundreds of employees from the CIS business unit will be transferred to different departments within the organization.
CIS technology converts light entering through a lens into electric signals, essentially acting as the "eyes" of mobile devices such as smartphones, tablets, and automobiles.
SK hynix began its CIS business in 2007, and by 2020, it branded all its CIS products under the name “Black Pearl”, focusing on securing a market presence. In 2021, the company succeeded in supplying CIS components for Samsung Electronics' Galaxy Z3 series and Galaxy A series smartphones, marking its entry into the mobile market.
However, declining profitability led to ongoing concerns about whether to continue the business. The company struggled with a significant gap between it and the market leaders. According to Counterpoint Research, as of 2023, Sony holds 54% of the global CIS market share, and Samsung holds 29%. SK hynix accounts for only 4-5%.
Over time, the sales, marketing, and quality teams within the CIS division were integrated into other departments, leaving only the development team. In late 2023, the development team was also moved under the Future Technology Research Institute.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
