Samsung Electronics (005930.KS), the world's largest memory chipmaker, has ordered approximately 20 extreme ultraviolet (EUV) lithography systems from Dutch semiconductor equipment maker ASML, industry sources said. Including deep ultraviolet (DUV) equipment, the total lithography order reaches around 70 units. Samsung plans to secure an overwhelming number of lithography tools to maintain a decisive lead in ultra-fine processes over rivals SK hynix (000660.KS) and Micron.
Multiple semiconductor industry sources confirmed Friday that Samsung has issued purchase orders to ASML and Japan's Canon for approximately 70 lithography systems to be installed in Phase 1 of its Pyeongtaek Campus Fab 5 (P5).
The EUV lithography order alone comprises about 20 units valued at more than 10 trillion won ($7.4 billion). The equipment will be deployed to boost production capacity for the company's DRAM-dedicated sixth-generation 10-nanometer-class process (1c). Higher productivity on the 1c process will in turn increase output of sixth-generation High Bandwidth Memory (HBM4), which is built on that node.
Samsung mass-produced HBM4 in February this year — a world first — and has been supplying it to Nvidia, the world's largest AI chip company. HBM4 is used in Nvidia's latest high-performance GPU, Rubin. The industry expects Rubin, set for full-scale launch in the second half of this year, to generate more than $1 trillion (1,500 trillion won) in revenue as it is supplied to U.S. big tech firms including Google and Amazon.
Samsung is ramping up HBM4 production at its Hwaseong H3 Line 17 and Pyeongtaek P3 and P4 fabs in time for Rubin's launch. Once the newly ordered EUV systems are delivered sequentially from ASML, Samsung is expected to simultaneously expand both DRAM and HBM4 output, solidifying its dominant position in the memory semiconductor market.
The lithography equipment ordered is scheduled for delivery in line with the completion of the Phase 1 cleanroom at P5, expected in the first quarter of next year. Given that semiconductor equipment shipments typically take about one year, Samsung is projected to begin installing the lithography tools, including EUV systems, in the P5 cleanroom by the second quarter. As a result, Samsung's 1c DRAM and HBM4 production capacity is highly likely to increase substantially in the first half of next year.
Industry analysts said Samsung's massive lithography order marks the beginning of the company widening its technological gap over competitors in ultra-fine process technology. SK hynix, locked in fierce competition in the HBM market, signed a contract with ASML late last month for approximately 20 EUV systems worth about 12 trillion won. SK hynix plans to bring its total EUV fleet to around 40 units to boost its competitiveness in ultra-fine processes.
However, Samsung's new order of approximately 20 EUV systems means the equipment gap between the two companies in ultra-fine processes is likely to persist. Samsung currently operates around 40 EUV systems — roughly twice the number held by SK hynix. With the addition of approximately 70 lithography tools including EUV units, Samsung can continue to stay ahead in the ultra-fine process race against SK hynix. Analysts added that Samsung could also gain an edge in the development competition for the seventh-generation 10-nanometer-class DRAM (1d), which will be applied starting from HBM5E.
Samsung plans to deploy approximately 20 EUV systems at Pyeongtaek P5. If all four phases at P5 are configured as DRAM production lines, Samsung would be able to produce more than twice the volume of SK hynix.
"In the past, it was standard practice to decide NAND flash lines first when building a new fab, but this time the decision was made to expand DRAM lines first due to the expected increase in HBM4 shipments," an industry official familiar with the matter said. "EUV equipment is expected to be introduced sequentially starting in the second quarter of next year."
Samsung Electronics (005930.KS), the world's largest memory chipmaker, has ordered approximately 20 extreme ultraviolet (EUV) lithography systems from Dutch semiconductor equipment maker ASML, industry sources said. Including deep ultraviolet (DUV) equipment, the total lithography order reaches around 70 units. Samsung plans to secure an overwhelming number of lithography tools to maintain a decisive lead in ultra-fine processes over rivals SK hynix (000660.KS) and Micron.
Multiple semiconductor industry sources confirmed Friday that Samsung has issued purchase orders to ASML and Japan's Canon for approximately 70 lithography systems to be installed in Phase 1 of its Pyeongtaek Campus Fab 5 (P5).
The EUV lithography order alone comprises about 20 units valued at more than 10 trillion won ($7.4 billion). The equipment will be deployed to boost production capacity for the company's DRAM-dedicated sixth-generation 10-nanometer-class process (1c). Higher productivity on the 1c process will in turn increase output of sixth-generation High Bandwidth Memory (HBM4), which is built on that node.
Samsung mass-produced HBM4 in February this year — a world first — and has been supplying it to Nvidia, the world's largest AI chip company. HBM4 is used in Nvidia's latest high-performance GPU, Rubin. The industry expects Rubin, set for full-scale launch in the second half of this year, to generate more than $1 trillion (1,500 trillion won) in revenue as it is supplied to U.S. big tech firms including Google and Amazon.
Samsung is ramping up HBM4 production at its Hwaseong H3 Line 17 and Pyeongtaek P3 and P4 fabs in time for Rubin's launch. Once the newly ordered EUV systems are delivered sequentially from ASML, Samsung is expected to simultaneously expand both DRAM and HBM4 output, solidifying its dominant position in the memory semiconductor market.
The lithography equipment ordered is scheduled for delivery in line with the completion of the Phase 1 cleanroom at P5, expected in the first quarter of next year. Given that semiconductor equipment shipments typically take about one year, Samsung is projected to begin installing the lithography tools, including EUV systems, in the P5 cleanroom by the second quarter. As a result, Samsung's 1c DRAM and HBM4 production capacity is highly likely to increase substantially in the first half of next year.
Industry analysts said Samsung's massive lithography order marks the beginning of the company widening its technological gap over competitors in ultra-fine process technology. SK hynix, locked in fierce competition in the HBM market, signed a contract with ASML late last month for approximately 20 EUV systems worth about 12 trillion won. SK hynix plans to bring its total EUV fleet to around 40 units to boost its competitiveness in ultra-fine processes.
However, Samsung's new order of approximately 20 EUV systems means the equipment gap between the two companies in ultra-fine processes is likely to persist. Samsung currently operates around 40 EUV systems — roughly twice the number held by SK hynix. With the addition of approximately 70 lithography tools including EUV units, Samsung can continue to stay ahead in the ultra-fine process race against SK hynix. Analysts added that Samsung could also gain an edge in the development competition for the seventh-generation 10-nanometer-class DRAM (1d), which will be applied starting from HBM5E.
Samsung plans to deploy approximately 20 EUV systems at Pyeongtaek P5. If all four phases at P5 are configured as DRAM production lines, Samsung would be able to produce more than twice the volume of SK hynix.
"In the past, it was standard practice to decide NAND flash lines first when building a new fab, but this time the decision was made to expand DRAM lines first due to the expected increase in HBM4 shipments," an industry official familiar with the matter said. "EUV equipment is expected to be introduced sequentially starting in the second quarter of next year."
