SK hynix preparing to expand DRAM capacity (HBM, DRAM) by 80K wafers per month at M16, M10 fabs

SK hynix has started ordering equipment for DRAM expansion investment, with production capacity expected to be expanded by 18% at its M16, and M10 facilities in South Korea.

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The South Korean memory giant has started placing "full-scale orders" for production facilities at its M16 plant in Icheon, South Korea, which is currently under construction as a new state-of-the-art DRAM plant. Chosun reports from its industry sources that SK hynix ordered the key equipment to be invested at its M16 expansion from major equipment manufacturers.

Market research firm Omdia reports that SK hynix's monthly average DRAM production increased from 380,000 units in Q4 2023 to 400,000 units in Q2 2024. SK hynix is expected to increase its production capacity to 440,000 units in Q3 2024, but still trails behind South Korean memory rival Samsung, which produces a monthly average of over 670,000 units.

Samsung has ample space to expand its DRAM facilities at its Pyeongtaek plant, while SK hynix doesn't have the space (right now) to install additional DRAM facilities. SK hynix has its M15X plant in construction right now, expected to be operational in 2025, which is the only way for the company to expand DRAM production.

• Read more: SK hynix tells customers it will raise DDR5 DRAM prices by 15-20%
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• Read more: SK hynix says HBM3E expected to make up more than half of HBM shipments in 2024
• Read more: SK hynix Q2 2024 financials: quarter revenues hit all-time high, global #1 AI memory provider
• Read more: NVIDIA, TSMC, SK hynix form 'triangular alliance' for next-gen AI GPUs and HBM4 memory

SK hynix plans to secure more DRAM production capacity of around 80,000 units per month with its new expansion project, which will see the total production capacity increased by around 18% to 20%. We've just also heard that SK hynix is telling its customers to expect a 15% to 20% increase in DDR5 DRAM, which will have a flow-on effect to consumers in the months ahead... all because HBM is more important to produce right now, with DRAM chips going to HBM and AI GPUs.