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Home > News > SK Hynix will invest 800 billion won of equipment in the M16 plant in the second half of the year

SK Hynix will invest 800 billion won of equipment in the M16 plant in the second half of the year

In the second half of this year, SK Hynix will invest 800 billion won (US$709 million) in equipment for its new fab M16. The M16 plant was completed in February of this year and will use extreme ultraviolet (EUV) lithography to produce memory chips in the future.

According to etnews reports, SK Hynix plans to introduce equipment for the M16, with a 12-inch wafer input as the standard monthly production capacity of 18,000 pieces of equipment.

This investment plan will be carried out in the third and fourth quarters respectively. SK hynix has discussed the detailed progress with equipment suppliers in Korea and abroad. In terms of amount, the scale is about 800 billion won. An industry insider who understands the matter said, “SK Hynix plans to invest in M16 in the second half of the year in an 18K scale. As far as I know, they are currently negotiating the purchase of equipment.”

It is reported that this was originally SK Hynix’s 2022 investment plan. However, in view of the continued strong demand in the global semiconductor market, the company said on the first-quarter earnings conference call held in April, “In order to cope with the supply shortage of the entire semiconductor industry, it plans to advance some equipment investment from next year to the second half of this year.”

The M16 factory is located in Icheon, Gyeonggi-do, South Korea. It started construction in November 2018 with an investment of 3.5 trillion won. The construction lasted 25 months and was officially completed in February this year. SK Hynix also introduced its first EUV lithography machine.

The second-largest memory chip manufacturer in South Korea has been preparing for the production of "fourth-generation 10-nanometer level" (1a) DRAM in the second half of the year. However, since 1a DRAM is a new product based on the latest technology, it is expected that it will take time for the yield rate to stabilize.

It is worth mentioning that Samsung Electronics also plans to mass-produce 1a DRAM in the second half of this year. Whether the competition between the top two giants in the global DRAM market has been ignited for next-generation memory chips has aroused industry attention. In addition, Micron, which ranks third, is relatively lagging behind the introduction of EUV technology, and the next-generation memory chip products are still in the research and development stage.