SK Hynix to Buy 40 EUV Lithography Machines for Around $7.8 Billion

SK Hynix is committing a massive sum of capital to expand its memory production capabilities, a move that signals a major shift in the high-end semiconductor supply chain. The company plans to raise $28 billion through an American Depositary Receipts listing on the US stock market to fund this expansion. This influx of cash allows SK Hynix to purchase expensive lithography equipment from ASML, which is critical for manufacturing the most advanced memory chips. Buyers and industry watchers should note that this investment targets a significant increase in high-margin memory output, potentially stabilizing supply for next-generation devices.

SK Hynix plans to spend 11.9 trillion Korean Won on equipment

The core of this expansion involves the acquisition of Extreme Ultraviolet (EUV) lithography machines, which are essential for producing the densest memory structures available today. SK Hynix intends to spend 11.9 trillion Korean Won on this equipment, a figure that translates to approximately $7.8 billion or 52.7 billion RMB. The company estimates that this budget will secure between 35 and 40 units of these advanced machines. The acquisition reflects confidence in sustained demand for high-performance memory within data centers and artificial intelligence sectors.

• EUV Lithography Machine Purchase Cost: 11.9 trillion KRW (approx. $7.8 billion or 52.7 billion RMB)
• Estimated Equipment Quantity: 35-40 units
• Estimated Production Capacity Increase: Approx. 500,000 wafers/month
• Delivery Deadline: Before end of December 2027
• Projected Gross Margin: Approx. 94% next year

Technical specifications for the expansion indicate a target production capacity increase of approximately 500,000 wafers per month once the new equipment is operational. The delivery of these machines is scheduled to be completed before the end of December 2027. This timeline suggests a phased rollout rather than an immediate surge in output. The company has not disclosed the specific models or exact quantity of the machines, leaving some details of the hardware configuration to speculation.

Financial projections accompanying this hardware investment show strong confidence in future profitability. SK Hynix expects its memory gross margin to exceed 90% in the coming year, with a target of approximately 94% next year. This high margin expectation is driven by the company's strategy to control capacity release and maintain profit maximization. The expansion is designed to support this financial goal by adding high-value production capacity rather than simply increasing volume.

Despite the large investment, the immediate impact on global memory supply will be limited due to construction and installation timelines. The company acknowledges that capacity will not explode next year because of the time required to set up the new facilities. The phased implementation enables the company to synchronize manufacturing output with market requirements. The focus remains on long-term capacity growth and maintaining a competitive edge in the high-end memory market.