Samsung and SK Hynix Race for EUV Capacity

According to recent reports citing industry sources, South Korea's Samsung Electronics and SK Hynix are competing to secure delivery slots for extreme ultraviolet (EUV) lithography equipment, with each company reportedly committing between KRW 10 trillion and KRW 20 trillion. Their goal is to lock in limited ASML production capacity for 2027 and 2028, ensuring access to critical equipment for expanding advanced DRAM and high-bandwidth memory (HBM) production.

ASML has warned that its planned capacity expansion may still fall short of customer demand. During its third-quarter earnings conference, the Dutch semiconductor equipment manufacturer indicated that EUV production capacity is expected to increase by 30% in 2027, followed by another 30% expansion in 2028. Despite these increases, supply constraints are likely to persist. ASML is expected to ship approximately 65 EUV systems this year, up from 44 units last year, representing growth of nearly 50%. However, delivery lead times for key equipment have reportedly doubled compared with previous levels. Price increases are expected to begin affecting customers in 2027, with the full impact becoming more apparent in 2028. Memory manufacturers accounted for 46% of ASML's system sales in the third quarter, highlighting the growing importance of the memory sector.

SK Hynix previously announced in March that it planned to purchase approximately KRW 11.95 trillion worth of EUV equipment, with deliveries scheduled through the end of 2027. The investment supports the company's transition to its 1c process, the sixth generation of 10nm-class DRAM technology. As semiconductor manufacturing advances, the number of EUV lithography layers required for 1c DRAM is increasing from approximately three to more than five, driving up equipment requirements for each production line.

According to market research firm TrendForce, increasingly advanced semiconductor processes require more exposure time and additional lithography tools, making EUV equipment availability a major constraint on production capacity expansion.

Samsung Electronics is also accelerating equipment procurement in line with the development schedule of its Pyeongtaek P5 semiconductor fabrication plant. The facility is part of the company's five-year domestic investment plan, valued at KRW 450 trillion. Construction of the individual fab is expected to require more than KRW 60 trillion, with production targeted to begin in 2028. The first-phase cleanroom is expected to be completed in the first half of next year, allowing lithography equipment to be installed progressively. Samsung is also planning to introduce High-NA EUV technology in 2028 to strengthen its position in advanced DRAM manufacturing.

Meanwhile, equipment constraints are extending beyond front-end wafer fabrication into advanced semiconductor packaging. Companies such as Hanmi Semiconductor and Amkor Technology are reportedly seeing strong order visibility, with production schedules extending two to three years ahead. Demand is also increasing for critical HBM manufacturing equipment, including thermal compression bonding (TC Bonder) systems used in advanced chip stacking and packaging processes.

Industry observers note that AI data center demand is reshaping competition across the semiconductor manufacturing chain. Performance improvements increasingly depend not only on advanced front-end process technologies but also on sophisticated back-end packaging, including multi-layer chip stacking and high-density interconnections. As a result, front-end fabrication and advanced packaging capacity are becoming increasingly interconnected.

Analysts believe the competition for EUV equipment is ultimately a race against time. Companies that secure equipment earlier and complete process qualification faster may gain a significant advantage in the next HBM and DRAM technology cycles. However, aggressive equipment procurement also brings higher capital expenditure, depreciation costs, and greater pressure on cash flow and capital utilization.