STOCKS | Samsung and SK Hynix Compete for EUV Delivery Slots to Expand Advanced DRAM Capacity

Samsung Electronics and SK Hynix are competing to secure EUV lithography equipment deliveries as they expand advanced DRAM production, with each planning investment in the range of 10 trillion to 20 trillion won. According to Sina Finance, ASML has identified a shortfall in EUV supply for 2027–2028, and the two companies plan to take delivery of equipment in batches starting next year. SK Hynix disclosed in March that it would purchase EUV equipment worth about 11.95 trillion won, with delivery due by December 31, 2027. Equipment lead times have doubled from their previous maximum amid tight supply, prompting both companies to consider placing orders earlier and potentially adding orders later. Samsung is also increasing orders in line with its investment schedule at its Pyeongtaek site. Last November, it announced a five-year, 450 trillion won domestic investment plan that includes the P5 production line, which is targeted to begin production in 2028. Investment in a single P5 fab is reportedly more than 60 trillion won. The first-phase cleanroom work is expected to finish in the first half of next year, with equipment moving in afterward; Samsung has ordered lithography equipment for the line. EUV lithography uses a 13.5-nanometer wavelength light source to etch circuits and can reduce the need for multiple patterning, which splits patterns across repeated exposures. As circuit spacing narrows in advanced DRAM, including 10-nanometer-class sixth-generation 1c products, the number of process layers using EUV is increasing. TrendForce said SK Hynix plans to use EUV in more than five process layers for 1c DRAM, two more than in the previous generation. ASML said in its third-quarter report this year that, under current plans, EUV supply in 2027–2028 will not meet customer demand. It expects to ship about 65 EUV units this year, up nearly 50% from 44 last year. Supply would still fall short even if capacity rises 30% in 2027 and is planned to expand by another 30% in 2028. The effect of price increases for core products is expected to emerge gradually next year and be fully apparent in 2028. Storage customers accounted for 46% of ASML system sales in the third quarter this year. Samsung shipped the industry’s first EUV-based DRAM module in March 2020 and has since built up process experience; it currently has more EUV equipment than any other company in the memory sector. SK Hynix installed its first EUV machine at its M16 plant in Icheon in February 2021 and introduced the industry’s first High-NA EUV production machine last September. On September 8, Samsung announced an expanded partnership with ASML and plans to introduce High-NA EUV into DRAM production in 2028. Orders for back-end equipment makers are booked out two to three years, according to industry sources. HANMI Semiconductor and Amkor have largely filled their order books and are expanding production of key equipment for AI data centers, including thermal-compression bonders. An industry source said back-end processes for multidimensional chip packaging and interconnection are becoming more valuable alongside advanced front-end processes, and that HANMI Semiconductor and Amkor are increasingly tied to the cycle of major front-end manufacturers.