[News] SK hynix Reportedly Slows 1c DRAM Investment, Shifts Focus to 1b DRAM for HBM3E/HBM4

As AI chip giants like NVIDIA and AMD race ahead with next-gen HBM adoption, SK hynix is reportedly taking a more cautious stance on the investment in 1c DRAM (6th-gen 10nm-class), according to South Korean media outlet the bell. The move reflects the company’s strategy to double down on the more lucrative and in-demand HBM market, the report suggests.

According to the bell, SK hynix is likely to ramp up 1c DRAM production only once it begins mass-producing HBM4E, which will use 1c as its core die. The upcoming HBM4, set to enter mass production in the second half of this year, will continue using the more mature 1b DRAM process, the report adds.

According to the bell, HBM is 3 to 5 times more profitable than standard DRAM. HBM3 8-Hi (24GB) chips are reportedly priced just over $200, while HBM3E 8-Hi (36GB) fetch nearly $400. The upcoming HBM4 12-Hi could top $600, the report notes.

Given the strong margins, the bell suggests that SK hynix is prioritizing the expansion of its 1b DRAM capacity, which powers both HBM3E and HBM4. Its new M15X fab, slated for completion in the second half of 2025, will house mass production lines for 1b DRAM, as per the bell.

As SK hynix aims to double down on 1b DRAM, the bell suggests that the company is slowing equipment orders for its 11nm-class 1c DRAM. As ZDNet indicates, related equipment installation in M15X is expected around October and November.

So far, SK hynix and Micron have reportedly rolled out their 12-layer HBM4 samples—SK hynix in March, Micron in June. Notably, unlike SK hynix and Micron, which will use 1b DRAM for HBM4, Samsung is betting on 1c DRAM instead, and plans to expand 1c DRAM production in both Hwaseong and Pyeongtaek, with investments starting by year-end, as per ZDNet.

Read more

• [News] Micron Ships HBM4 Samples with 1ß Process to Multiple Customers, Reportedly Including NVIDIA
• [News] Following JEDEC’s HBM4 Standard: What’s Next for SK hynix, Samsung, and Micron?

(Photo credit: SK hynix)