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SK hynix to expand implementation of EUV technology in DRAM production

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SK hynix's new M16 DRAM plant in Icheon, Gyeonggi Province / Courtesy of SK hynix
SK hynix's new M16 DRAM plant in Icheon, Gyeonggi Province / Courtesy of SK hynix

By Kim Hyun-bin

SK hynix expects demand for its DRAM (dynamic random-access memory) to rise further this year and a ramp-up in production to occur in the second quarter, the company said in a conference call after releasing its first-quarter earnings, Wednesday.

"This year's DRAM demand is expected to grow around 20 percent," SK hynix said. "The 1z nanometer yield has been enhanced earlier than planned, and a ramp-up is expected starting in the second quarter. Starting from the second half of the year, we plan to utilize EUV (extreme ultraviolet lithography technology) for the 1a nanometer process to maintain our DRAM competitiveness."

This move will mark the company's first time utilizing EUV to mass-produce 1a nanometer line width node, with plans to expand it to other production lines.

"Currently, we plan to implement the EUV in one layer," the company said. "In the future, we plan to expand the implementation of EUV to 1b, 1c Nano line width nodes as well. Earlier this year, we were successful in implementing the EUV technology," the company said.

Demand for semiconductor chips has soared amid the pandemic and SK is also contemplating an expansion of its 8-inch foundry business.

"We have no plans to enter the 12-inch foundry business," the company said. "We believe the future of the 8-inch foundry is bright. We are under discussion to expand our 8-inch business, but nothing is concrete at the moment."

The country's second-largest chipmaker's net profit jumped 52.9 percent in the first quarter from a year earlier, due to strong demand for memory chips in mobile and computer products.

The company's net profit stood at 992.6 billion won ($893.9 million) in the first quarter of the year, compared to 649 billion won a year earlier, the company said in a regulatory filing.

Operating income for the quarter was 1.32 trillion won, up 65.5 percent from the same period a year earlier, while sales rose 18 percent to 8.49 trillion won.

Compared to the fourth quarter of 2020, operating profit surged 37.1 percent.

The high earnings come despite the first quarter generally being a relatively slow season for the semiconductor industry.

DRAM bit shipments increased by 4 percent quarter-on-quarter, due to a shift in focus to mobile devices, PCs and graphics for sales. For NAND flash technology, the bit shipment increased by 21 percent compared to the previous quarter, the company added.

SK hynix has an optimistic view of the future, as market conditions after the first quarter show stronger-than-expected growth of market demand.



Kim Hyun-bin hyunbin@koreatimes.co.kr


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