Due to the low profitability of the CMOS image sensor (CIS) division, SK hynix will exit the business. Faced with increasingly fierce competition, shipments in 2024 hit a new low. SK Hynix's overall CIS market share fell below 3%, falling outside the top five in the smartphone image sensor market rankings.
SK Hynix's smartphone CIS business sales peaked in 2021, with a market share of over 7%. The good times did not last long. The supplier's sales began to decline in 2022 and reached their lowest point in 2024. SK Hynix developed core sensors targeting new markets, but failed to enter the smartphone and tablet markets.
SK Hynix is currently exploring opportunities to leverage the demand for artificial intelligence (AI) and expand its leadership in high-bandwidth memory. To secure long-term profitability and leadership in the AI memory market, the supplier has decided to discontinue production of CIS products, reallocate resources, and adjust R&D investments related to image sensors.