On Thursday, SK hynix announced the creation of two new divisions focused on developing and mass-producing next-generation artificial intelligence (AI) chips, as part of its annual organizational reshuffle. This move aims to strengthen the company’s leadership in the rapidly expanding AI memory market.

The new units will be led by a Chief Development Officer (CDO) and a Chief Production Officer (CPO), who will work alongside three other executives overseeing marketing, technology, and corporate operations.

Vice President Ahn Hyun has been promoted to president and will lead the newly formed development unit. This unit will focus on creating future products, including next-generation AI high bandwidth memory (HBM), according to Yonhap News Agency. As CDO, Ahn will also oversee efforts to enhance SK hynix’s technological leadership in DRAM and NAND technologies.

The newly established mass production unit will handle both front-end and back-end chip production processes, with an emphasis on optimizing synergies and advancing production technologies at SK hynix’s domestic and international fabs, including the upcoming Yongin Semiconductor Cluster.

“We’ve made significant progress this year in strengthening our technological competitiveness in the AI memory sector, particularly in HBM and enterprise solid-state drives (SSDs),” said CEO Kwak Noh-jung. “In response to the rapidly changing business landscape, we are rebalancing our operations to solidify our leadership in AI memory and secure long-term growth.”

SK hynix currently holds a dominant 54% share of the global HBM market, ahead of Samsung Electronics at 41%, and Micron Technology at 5%.

In a related development, SK Telecom also announced an organizational reshuffle aimed at boosting its AI and telecommunications capabilities. The company will operate seven business divisions, with three focusing on telecommunications and four dedicated to AI. The AI divisions include the A. (pronounced “A dot”) division, global personal AI agent division, AI transformation division, and AI data center division. The A. division refers to SK Telecom’s domestic AI assistant service.