SK hynix Unveils Roadmap for Use of Recycled Materials

• Aims to increase the percentage of recycled materials to 25% by 2025, above 30% by 2030
• Sets goals and action plans, while encouraging participation from partners
• Moves towards a circular economy by joining forces with all stakeholders

SEOUL, South Korea, Feb. 6, 2024 /PRNewswire/ -- SK hynix Inc. (or "the company", www.skhynix.com) announced today that it has established a roadmap to actively utilize recycled* and renewable** materials in production, marking the first case that a semiconductor company lays out such mid- to long-term plan.

*Recycled Materials: Materials extracted, recovered and reprocessed from pre-consumer waste generated in the manufacturing process before arrival at end users or from post-consumer waste disposed of after use.

**Renewable Materials: Sustainable materials that originate from nature and can be regenerated naturally over time, ultimately not depleted (e.g. wood, etc.).

"In order to achieve Net Zero, or Carbon Neutrality, establishing a circular economy system centered on resource recycling has become an important task for countries and companies around the world," SK hynix said. "In line with this trend, we have decided to preemptively establish and faithfully implement the goal of increasing the use of recycled materials in stages."

Through this roadmap, SK hynix aims to raise the proportion of recycled materials used in the products currently manufactured by the company to 25% by 2025 and more than 30% (based on weight) by 2030.

As part of the plan, SK hynix will start with essential metals for semiconductor production, such as copper, tin, and gold, and replace them with recycled materials. Industry experts point out that metal materials are the most effective when it comes to resource circulation as they account for a large proportion of the weight of finished memory products and are difficult to replace with other materials.

The company also plans to make all-out efforts to promote resource circularity, including replacing the plastic packaging used to protect finished semiconductor products with recycled plastic.

To this end, SK hynix prepared an implementation system for the goals in the roadmap.

The company will strengthen certification procedures and quality evaluation for recycled materials purchased directly by the company, and decide whether to apply the materials included in the parts supplied by business partners after receiving and reviewing the quality evaluation. In addition, SK hynix plans to encourage its suppliers to join the efforts to obtain validation from publicly trusted external organizations, such as ISO 14021*, to verify the use and proportion of recycled materials. In this process, the company will provide its unsparing support to its suppliers if necessary.

*ISO 14021: Type 2 environmental label established by the International Organization for Standardization (ISO) that manufacturers adopt to declare themselves environmentally friendly

"As a company that takes ESG management seriously, we intend to actively participate in the establishment of a global circular economy," said Junho Song, Vice President and Head of Advanced Quality & Analysis, of SK hynix. "While implementing this roadmap, we will work together with all stakeholders in the semiconductor supply chain, including customers and suppliers, to achieve practical results."

"These materials are not an offer for sale of the securities of SK hynix Inc. in the United States. The securities may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. SK hynix Inc. does not intend to register any offering in the United States or to conduct a public offering of securities in the United States."

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world's top tier semiconductor supplier offering Dynamic Random Access Memory chips ("DRAM"), flash memory chips ("NAND flash") and CMOS Image Sensors ("CIS") for a wide range of distinguished customers globally. The Company's shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

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