en.Wedoany.com Reported - On June 23, memory chip giant SK Hynix plans to allocate more new production capacity to DDR5 and LPDDR5 products while maintaining HBM capacity, capitalizing on the current price surge driven by supply shortages. The theoretical gross margin for its DDR5 products is expected to exceed 90%.
Currently, over 40% of SK Hynix's revenue comes from HBM, a proportion far exceeding that of Samsung Electronics. Leveraging its first-mover advantage in high-end memory for AI, SK Hynix is actively seeking ultra-high profits in the traditional DRAM segment while solidifying its position in the HBM market.
Reports indicate that the current DRAM market remains in a state of persistent supply shortage, with DDR5 and LPDDR5 prices surging, creating "extreme pricing room." More critically, production lines for DDR5 and LPDDR5 are highly flexible, allowing rapid conversion to NAND Flash production in the event of future market fluctuations—a flexibility far greater than that of dedicated HBM production lines. This enables SK Hynix to diversify its layout across HBM, DDR5, LPDDR5, and NAND, hedging against the volatility risks of the semiconductor cycle.
To support this plan to increase DDR5/LPDDR5 production, SK Hynix has set an ambitious capacity roadmap. Reports state that SK Hynix currently has a monthly DRAM capacity of approximately 600,000 wafers and has announced plans to triple its memory capacity within eight years. The new semiconductor cluster plant in Yongin, South Korea, will serve as the core base for this expansion plan.
In contrast, while Samsung Electronics is accelerating expansion in Pyeongtaek, its overall capacity planning is not yet as aggressive as SK Hynix's. Samsung originally planned to build a plant in the same Yongin semiconductor cluster, but the relevant project remains in the planning stage. However, industry insiders generally expect Samsung to announce further capacity expansion plans within this year to respond to market changes and competitive challenges.
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