SK Hynix, a leading global supplier of memory chips, has announced it will make early payments totaling ₩133 billion (approximately 673 million yuan or $104 million) to 470 suppliers ahead of the Lunar New Year holiday. This initiative is aimed at providing financial relief to its partners, especially amid the ongoing economic challenges.

While SK Hynix is renowned for its role in semiconductor production, particularly DRAM and NAND memory chips, it is also a major customer for industries that rely on these components, including PCB (printed circuit board) manufacturers. These suppliers, who produce the circuit boards that power a wide array of electronic devices, depend on stable and timely deliveries of semiconductors from companies like SK Hynix.

On January 17, SK Hynix explained, "In light of the challenging economic environment marked by high interest rates and exchange rate volatility, we hope this initiative will assist suppliers, in managing their finances, boosting domestic consumption, and supporting households in preparing for the holiday season."

The early payments are expected to help suppliers manage short-term financial demands, such as purchasing raw materials or paying holiday bonuses to employees. For PCB manufacturers, this could be especially beneficial, as they need to secure essential components, like memory chips, to meet production schedules and customer needs.

Since 2020, SK Hynix has increased its payment frequency from three to four times a month, and it operates mutual growth funds worth ₩360 billion. These include a ₩340 billion low-interest fund and a ₩20 billion interest-free fund, which help suppliers maintain stable operations.

Kim Sung-han, Executive Vice President of Procurement at SK Hynix, emphasized the importance of strong partnerships, saying, "A solid bond with our suppliers is essential for SK Hynix to maintain its position as a leading AI memory company. We will continue to foster trust and mutual growth with our partners to strengthen the foundational competitiveness needed to lead in the AI era."

By providing these early payments, SK Hynix reaffirms its commitment to supporting its supply chain, particularly for industries like PCB manufacturing, which rely heavily on a steady and predictable supply of memory and other semiconductor components. This proactive approach helps ensure the stability of these critical sectors, which are essential in powering the next generation of electronic devices, from smartphones to advanced computing systems.