SK Hynix Plans 2024 Expansion of Advanced DRAM Capacity

SK Hynix, a prominent player in the South Korean semiconductor industry, has announced plans for a comprehensive expansion of advanced DRAM production capacity set to commence in 2024. This strategic initiative aims to meet the burgeoning market demands for electronic components. The expansion will be concentrated at SK Hynix's Icheon facilities, specifically the M16 and M14 plants, where the company will deploy state-of-the-art equipment for both fourth-generation 10-nanometer (1a) and fifth-generation 10-nanometer (1b) DRAM, with potential integration of extreme ultraviolet (EUV) technology.

Central to this expansion strategy is the M16 plant, serving as SK Hynix's flagship advanced DRAM production hub. Since its completion in 2021, the facility has been a key producer of 1a DRAM and 1b DRAM. Notably, the latter represents the latest commercially available generation of DRAM and is earmarked for deployment in the production of the fifth-generation HBM "HBM3E," scheduled for the first half of 2024.

In response to the fierce competition within the global generative AI sector, SK Hynix is increasing its investments in HBM technology and production capacity. The company's disclosure indicates that 2024 will witness a strategic focus on process conversion, with 1a DRAM and 1b DRAM at the forefront, ensuring optimized HBM capacity. Additionally, SK Hynix will prioritize investments in the core technology of HBM processes, specifically silicon through-silicon vias (TSV).

This investment plan by SK Hynix aligns with similar endeavors by major players in the global DRAM industry. Samsung, for instance, plans to invest approximately 270 trillion Korean won in global wafer front-end equipment (WFE) in 2024, reflecting a substantial 25% annual increase. Similarly, Micron, in its first-quarter fiscal report for the 2024 accounting year, anticipates a capital expenditure ranging from $7.5 billion to $8 billion. These investments are primarily aimed at enhancing the production of HBM3E, showcasing a collective commitment to advancing HBM technology and meeting market demands.