SK Hynix invests in EUV as AI boom tightens conventional DRAM supply

South Korean memory giant SK Hynix (KRX: 000660) plans to purchase around $8 billion of extreme ultraviolet (EUV) equipment from Dutch chipmaker ASML Holding (AMS: ASML) by the end of 2027 to support its next-generation chips. The move reflects intensifying competition in high-bandwidth memory (HBM), a critical component in AI data centers where SK Hynix has emerged as a key supplier.

As hyperscalers accelerate AI infrastructure spending, demand for HBM, a premium, high-performance form of DRAM, has surged, prompting memory makers to reallocate capacity away from conventional DRAM.

This shift is reshaping the broader memory market. A tightening supply of traditional DRAM is driving prices higher. Analysts expect the average selling prices for Micron Technology’s (NASDAQ: MU) conventional DRAM to rise 187% year-on-year in 2026 to $1.18. Revenues from conventional DRAM are expected to climb 238% to $106 billion, highlighting the scale of the upcycle.

Peers including Micron and Samsung Electronics (KRX: 005930) are also expected to see similarly strong 2026, as constrained supply and AI-led demand reinforce pricing power across the sector. NAND flash markets are similarly rebounding, with Micron’s NAND revenues projected to increase 179% to $38.3 billion, while the HBM segment itself is expected to expand 52% to $29.3 billion.

Against this backdrop, SK Hynix’s EUV investment signals a strategic push to stay ahead in advanced node manufacturing.

 This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.