Samsung Electronics and SK Hynix have technical differences!

Samsung and SK Hynix go separate ways in EUV lithography technology field Samsung focuses on improving yield, while SK Hynix focuses on long-term technological advancement. South Korea's two semiconductor giants, Samsung Electronics and SK Hynix, have adopted different strategies in extreme ultraviolet (EUV) lithography technology, attracting high attention from the industry. This development comes at a time when both companies are striving to enhance their competitiveness in the highly dynamic and competitive semiconductor market. As part of the year-end organization restructuring, Samsung Electronics established a new task force (TF) under its global manufacturing and infrastructure headquarters, named "EUV Synergy TF." This is seen as an effort to improve the yield in the production of ultra-fine semiconductors (such as 3nm fab). The mission of the EUV Synergy TF is to oversee the management of EUV equipment, with a focus on improving the productivity of lithography and tracking equipment. The team's goal is to maximize the productivity of various materials and components used in EUV lithography equipment, including ASML's exclusive $20 billion lithography machines and Tokyo Electron's EUV track equipment. Samsung's commitment to EUV technology is reflected in its significant investments in EUV lithography machines. The company has purchased more than 30 EUV lithography machines at its Hwaseong and Pyeongtaek facilities. EUV lithography uses light with a wavelength of 13.5nm to print semiconductor circuits onto wafers, crucial for producing smaller and more complex semiconductor circuits. Samsung introduced EUV into its foundry process in 2019, and has since faced challenges in improving yield for its 10nm-class 6th generation DRAM and sub-3nm fabs. In contrast, SK Hynix has taken a different approach. The company dissolved its EUV TF as part of this year's organizational restructuring, integrating it into the Future Technology Research Institute. This highlights SK Hynix's focus on long-term technological advancement rather than immediate yield improvement. SK Hynix began using EUV for its 10nm-class 4th generation DRAM in 2021, currently operating over 10 EUV machines at its M16 fab in Icheon. Looking ahead, the SK Hynix Future Technology Research Institute is preparing to launch the next generation of EUV lithography equipment, namely high numerical aperture (NA) machines. SK Hynix expects to receive its first high-NA machine as early as the second half of next year. This strategic shift underscores SK Hynix's commitment to maintaining a leading technological position and preparing for the future advancement of semiconductor manufacturing. During the NAND downturn, Samsung and SK Hynix are working hard to reduce costs. Domestic memory industry players like Samsung Electronics and SK Hynix are adopting a "cost reduction" investment strategy during the NAND downturn. It is understood that these companies have recently begun efforts to significantly reduce legacy NAND production, while converting underutilized older facilities into state-of-the-art facilities. According to industry sources, Samsung Electronics and SK Hynix have instructed major partners to renovate existing NAND facilities in the latter half of this year. Recently, the NAND market prices have been declining due to sluggish demand from IT sectors such as PCs and smartphones. According to market research firm Trend Force, the average fixed transaction price for universal NAND flash products (128Gb 16Gx8 MLC) used for storage cards and USB devices is $2.16, a decrease of 29.80% compared to the previous period. In particular, older NAND models such as the 7th generation are experiencing severe oversupply. In addition to declining IT demand, newcomers like Kioxia from Japan and Chinese manufacturers have also joined the competition. The 7th generation (V7) NAND consists of NAND memory units stacked in about 170 layers. NAND performance improves with the stacking of more units. Samsung Electronics and SK Hynix are set to mass-produce the 7th generation NAND starting from the end of 2021. In response, the domestic memory industry has reduced the production rate of 7th generation NAND and requested partners to renovate facilities, using idle facilities for 8th and 9th generation NAND. Additionally, they have decided to postpone or reduce investment plans for new state-of-the-art NAND facilities. This article is reprinted from the WeChat public account "Semiconductor Industry Observation"; GMTEight Editor: Wang Qiujia.