- SK Hynix has expanded its use of EUV lithography to six layers in 1c DRAM production, advancing beyond its previous 1b node with four layers, potentially enhancing chip density and performance—especially in DDR5 and high-bandwidth memory (HBM).
- The strategic increase in EUV usage supports preparations for High-NA EUV, projected to enter production by 2026, which may boost bit density by 20–30% and reduce per-gigabyte cost.
- SK Hynix currently holds a dominant 60% share of the HBM market, largely due to its supply relationship with Nvidia’s AI GPUs, surpassing Samsung in memory revenue as of Q2 2025.
- While Samsung has prioritised yield improvements and aggressive investment in DRAM, SK Hynix has focused on supply chain stability and EUV process scaling, intensifying their rivalry.
- ASML, as the exclusive supplier of EUV equipment, is benefiting from sector-wide expansion, with its High-NA tools now pivotal to future DRAM and logic chip innovation.
Advancements in semiconductor manufacturing are reshaping the competitive landscape for dynamic random-access memory (DRAM), with South Korean firms leading the charge through aggressive adoption of extreme ultraviolet (EUV) lithography. SK Hynix’s reported push to integrate six EUV layers into its 1c DRAM process marks a significant escalation in technology deployment, potentially widening its edge over rivals like Samsung in high-performance memory segments such as high-bandwidth memory (HBM) for artificial intelligence applications.
The Drive for EUV Layer Expansion in DRAM
In the relentless pursuit of denser, faster, and more efficient memory chips, EUV lithography has emerged as a cornerstone technology. Unlike traditional multi-patterning techniques, EUV enables finer patterning at nanoscale levels, improving yields and reducing power consumption. SK Hynix is reportedly scaling up its use of EUV to six layers in the 1c generation—representing the sixth iteration of 10nm-class DRAM—up from four layers in the prior 1b node. This move not only enhances chip density but also paves the way for superior performance in DDR5 and HBM products, critical for data centres and AI accelerators.
Historical context underscores the strategic importance of this shift. As far back as 2018, both SK Hynix and Samsung initiated EUV research for DRAM, with Samsung achieving commercial production of 16Gb LPDDR5 chips using EUV-based 1znm processes by 2020. SK Hynix followed suit, installing EUV equipment at its facilities for 1-alpha-nm DRAM starting in 2021. However, the current trajectory suggests SK Hynix is accelerating beyond these milestones, aiming to leverage increased EUV layers for better productivity and cost efficiency.
Implications for High-NA EUV Adoption
Looking ahead, preparations for high-numerical aperture (High-NA) EUV systems represent the next frontier. These advanced machines, supplied by ASML, promise even greater resolution for sub-7nm nodes, potentially revolutionising DRAM and logic chip fabrication. SK Hynix’s strategy aligns with this, as integrating more EUV layers in 1c DRAM could serve as a testing ground for High-NA designs, expected to enter production by 2026. Analyst models from firms like TrendForce project that such advancements could boost DRAM bit density by 20–30% over current generations, translating to lower costs per gigabyte and higher margins for manufacturers.
This technological leap is not without risks. Increasing EUV layers demands substantial capital investment in equipment and process optimisation. Yet, for SK Hynix, the payoff could be dominance in premium memory markets, particularly HBM, where it already commands over 60% share as of Q2 2025, driven by supplies to Nvidia’s AI GPUs.
Competitive Dynamics: SK Hynix vs. Samsung
The rivalry between SK Hynix and Samsung in the DRAM arena is intensifying, with divergent strategies highlighting their approaches. Samsung has focused on early launches and yield improvements through dedicated EUV task forces, claiming breakthroughs in 1c DRAM with yields exceeding 50%. In contrast, SK Hynix has adopted a more measured stance, prioritising supply chain stability and partnerships, such as with Nvidia, before ramping production.
Recent reports indicate Samsung is accelerating investments in 1c DRAM to reclaim leadership, while SK Hynix’s EUV layer expansion could provide a performance edge, especially in next-generation HBM4. This competition extends to emerging architectures like 4F² DRAM, a stepping stone to three-dimensional memory stacks, where both firms are investing heavily. Analyst sentiment, as tracked by Bloomberg, rates the sector positively, with buy recommendations prevailing due to surging AI-driven demand. For instance, SK Hynix’s record profits in Q2 2025 underscore its HBM dominance, dethroning Samsung as the top memory maker by revenue.
Broader industry trends amplify these dynamics. Global DRAM demand is forecasted to grow at a compound annual rate of 15% through 2028, per IDC models, fuelled by AI and cloud computing. However, emerging challengers like China’s ChangXin Memory Technologies (CXMT) are closing the gap, rapidly advancing in 10nm-class processes despite EUV access limitations imposed by international sanctions.
Supply Chain Ripple Effects
At the heart of these advancements lies ASML, the sole provider of EUV lithography systems. The company’s High-NA EUV tools are already being adopted by leaders like Intel and TSMC, and South Korean firms’ strategies reflect contrasting paths: Samsung forming new EUV teams, while SK Hynix streamlines operations post-restructuring. As of 13 August 2025, ASML’s shares traded at $741.79 on Nasdaq, reflecting a 2.84% daily gain amid positive sector momentum—though calculations from previous close suggest a modest uptick, aligning with broader tech recovery.
Investor interest in ASML remains strong, with a forward P/E ratio of 27.78 and analyst ratings averaging 1.9 (strong buy) as of recent data. The firm’s market capitalisation stands at $291.67 billion, supported by robust demand for its equipment. Historical shipments reveal South Korean memory giants receiving significantly more EUV machines than competitors like Micron, underscoring their innovation drive.
Strategic and Market Implications
For investors, SK Hynix’s EUV advancements signal potential upside in memory stocks, but with caveats. While the technology promises higher yields and performance, execution risks—such as process integration challenges—could delay timelines. Analyst-led forecasts from Morgan Stanley predict SK Hynix’s HBM revenue could double in 2026 if High-NA EUV integrations succeed, outpacing Samsung’s growth by 10–15%.
Conversely, Samsung’s aggressive posture might yield quicker market entries, though at higher initial costs. The broader semiconductor ecosystem benefits, with ASML poised to capture increased orders. Sentiment from verified sources like S&P Global indicates optimism, labelling the EUV ramp-up as a “game-changer” for memory efficiency.
In summary, SK Hynix’s bold EUV strategy in 1c DRAM not only intensifies competition with Samsung but also accelerates the adoption of cutting-edge lithography, benefiting suppliers like ASML. As AI and data-intensive applications proliferate, these developments could redefine memory market leadership, rewarding firms that master the EUV curve.
References
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