South Korean chipmaker SK Hynix has relocated its global sales and marketing team (GSM) from Incheon to Seoul, citing ease of access for foreign guests and staffing convenience as primary reasons for the move. Additionally, the company has split its procurement team into a front-end team and a back-end team to strengthen its sourcing of components and equipment for chip production.
Reasons for the Relocation
Sources within SK Hynix explained that the move to Seoul would make it easier to receive foreign guests, hold meetings, and provide better staffing opportunities. The company's Incheon headquarters was unable to accommodate its growing workforce, prompting the need for a larger space.
The relocation is expected to enhance SK Hynix's global competitiveness as the company plans to leverage Seoul's status as an international hub for business and technology.
Procurement Team Restructuring
In addition to the relocation, SK Hynix has also restructured its procurement team to improve the sourcing of components and equipment used in the back-end of chip production. The new front-end team will focus on procurement related to wafer fabrication, while the back-end team will oversee the sourcing of components for packaging and testing.
The move is aimed at increasing efficiency and productivity in the procurement process and further enhancing SK Hynix's competitive edge in the global market.
Challenges Facing SK Hynix
SK Hynix's decision to restructure and relocate comes amid a challenging period for the global chip industry. Weak demand and oversupply in the market have impacted the company's financial performance.
In the fourth quarter of fiscal 2022, SK Hynix recorded its largest quarterly loss ever, with an operating loss of 1.7 trillion won ($1.4 billion USD). This was a significant decline compared to a profit of 4.2 trillion won in the same period last year, marking the company's first quarterly operating loss since the third quarter of 2012.
Outlook for SK Hynix
Despite the challenging market conditions, SK Hynix remains optimistic about its future prospects. The company plans to focus on expanding its product portfolio and investing in new technologies to maintain its competitive edge.
SK Hynix has already announced plans to invest $106 billion USD in research and development (R&D) and production facilities over the next decade. The company aims to strengthen its position in the global chip market and capitalize on growing demand for semiconductors.
0 Comments