SK hynix is doubling down on its ambition to lead the AI memory race, committing billions of dollars to secure cutting-edge EUV lithography tools while scaling up production capacity. The move signals a broader strategy to strengthen its position in high-bandwidth memory (HBM) and next-generation DRAM amid surging global AI demand.
The company has announced plans to invest nearly KRW 12 trillion (around $8 billion) in EUV equipment sourced from ASML, with spending scheduled through 2027. This large-scale acquisition represents close to 10% of SK hynix’s total assets as of the end of 2024, underscoring the strategic weight of the initiative.
The investment will cover not only procurement but also installation and process optimization over the next two years. By expanding its EUV capabilities, SK hynix aims to meet accelerating demand for AI-focused memory such as HBM, while also supporting broader DRAM market needs.
Driving the transition to 1c DRAM technology
A key motivation behind the EUV push is the company’s roadmap toward its sixth-generation 10nm-class (1c) DRAM process. This node is expected to underpin a wide range of future products, including HBM, DDR5, and LPDDR6.
Currently, SK hynix is producing HBM4 core dies using its 1b process. However, it is expected to migrate to 1c for the upcoming HBM4E generation, while leveraging TSMC’s 3nm technology for logic dies. In comparison, Samsung has already implemented 1c DRAM in its HBM4 lineup, intensifying competition in the high-performance memory segment.
Expanding capacity to match AI demand
Alongside its technology transition, SK hynix is moving quickly to expand manufacturing output. The company has recently brought forward equipment installation at its M15X facility in Cheongju, opening a second cleanroom ahead of schedule. Both cleanrooms are now preparing for full-scale operations.
This expansion is expected to play a critical role in meeting near-term demand for next-generation HBM products, at least until SK hynix completes its first fabrication plant in the Yongin semiconductor cluster, targeted for 2027.
A long-term bet on EUV leadership
SK hynix’s aggressive EUV roadmap builds on earlier milestones, including its adoption of High-NA EUV tools for mass production at its M16 fab in Icheon. Looking ahead, the company is reportedly planning to double its EUV fleet by adding around 20 more machines by 2027.
With each EUV system estimated to cost between KRW 300 billion and 500 billion, the scale of investment highlights the company’s long-term commitment to advanced memory manufacturing. As AI workloads continue to surge globally, SK hynix is positioning itself to stay at the forefront of the industry’s most critical supply chain.
