SK hynix (000660.KS) is rushing to build cutting-edge production lines by purchasing approximately 12 trillion won ($8.8 billion) worth of key semiconductor equipment, as it braces for an intensifying infrastructure race with Samsung Electronics (005930.KS) over dominance in the memory market, including high bandwidth memory (HBM).
SK hynix said in a regulatory filing Thursday that it will purchase extreme ultraviolet (EUV) scanners from Dutch equipment maker ASML for a total of 11.9497 trillion won. The company plans to complete the transaction and take delivery of the equipment by December next year.
EUV machines serve as a "brush" that uses intense light to etch ultra-fine semiconductor circuits onto silicon wafers. ASML is the world's sole supplier of high-performance EUV equipment needed for advanced processes below 7 nanometers. Both Samsung Electronics and SK hynix have each purchased and are operating dozens of EUV machines from ASML.
The exact number of EUV units SK hynix has agreed to purchase was not disclosed, but given that a single machine typically costs between 300 billion and 400 billion won, the order is estimated at more than 30 units. The purchase will roughly double SK hynix's existing EUV fleet.
SK hynix plans to deploy the new equipment primarily at advanced fabs in Icheon, Cheongju, and Yongin to upgrade its manufacturing processes. The Icheon M16 fab, where SK hynix first introduced EUV technology, currently runs the most advanced 1c DRAM process, starting from 1a. The new Cheongju M15X fab, which has been receiving equipment since last year, is expected to upgrade its 1b process and introduce 1c as well. The first Yongin fab, under construction with a target of beginning operations in early next year, is also preparing to adopt advanced processes including 1c.
Industry observers expect SK hynix to use the new EUV machines to strengthen competitiveness in HBM, its flagship product. For HBM4, the next-generation HBM destined for Nvidia's latest "Vera Rubin" chip, Samsung Electronics became the first in the industry to apply the 1c process, while SK hynix is competing with its existing 1b process. SK hynix plans to produce HBM4E using the 1c process next year.
"Through the transition to EUV-based leading-edge processes, we will strengthen our competitiveness in artificial intelligence memory and steadily expand our supply of commodity memory as well," an SK hynix official said. "We will solidify our market leadership by responding to the surging global demand for memory."
