Seoul: Chip giant SK hynix Inc. announced its decision to withdraw from the image sensor business for smartphones and digital cameras, shifting its focus toward artificial intelligence (AI) memory to bolster its position as a leading AI memory provider.
According to Yonhap News Agency, SK hynix plans to integrate its image sensor business unit into its AI memory operations. This strategic move aims to strengthen the company's competitiveness in the AI industry by offering a comprehensive range of AI-centric memory products and technologies.
The company highlighted the increasing significance of AI, stating that the rise of the AI era has resulted in substantial achievements in AI memory. SK hynix views this transition as pivotal in its journey to becoming a leader in the AI sector. By consolidating its capabilities, the company aims to enhance its AI memory competitiveness.
SK hynix initially entered the image sensor market in 2008, launching its complementary metal oxide semiconductor image sensor (CIS) brand, Black Pearl, the following year. Despite this venture, the image sensor business faced challenges, including low profitability due to heightened competition and decreasing demand for smartphones.
Complementary metal oxide semiconductor image sensors are semiconductor devices that convert light into digital images, predominantly used in devices such as smartphones, digital cameras, and security systems.