SK hynix's M16 plant in Icheon, Gyeonggi Province, which has been expanding investment since last year, is expected to record its highest production capacity in the second half of this year. This level will match the quarterly wafer input volume of 570,000 wafers (an average of about 190,000 wafers per month) from SK hynix's largest DRAM production base, the Wuxi plant in China. Furthermore, starting next year with the full-scale operation of the M15X plant, the production share from the Wuxi plant is expected to decrease to around 30%, while the domestic production ratio will significantly increase.
According to industry sources on the 14th, the production capacity of SK hynix's M16 plant in Icheon, which has been expanding investment, is expected to reach its maximum level this year and will catch up with the production of the Wuxi plant in China. As of the third quarter of this year, the average monthly wafer input amount for M16 is around 170,000 wafers, representing an increase of about 70% compared to the same period last year (100,000 wafers). Compared to the first quarter of last year, the production capacity has been increased by 2 to 3 times.
SK hynix is known to have ordered key equipment to be used for the M16 expansion investment from major equipment manufacturers in the second half of last year. This includes equipment for high-bandwidth memory (HBM) DRAM and general-purpose DRAM used in various electronic devices. Equipment began to be introduced to M16 in earnest from the fourth quarter of last year, and setup work for expanding production capacity has been underway since the beginning of this year.
As a result, the M16 plant has become a key pillar of DRAM production alongside the Wuxi plant in China, replacing the M14 plant, which was SK hynix's largest DRAM production base in Korea. Until last year, the DRAM production volume of M14 was over twice that of M16, but production volumes reversed starting from the third quarter of this year. The domestic DRAM production volume has also reached about 1 million wafers, exceeding two-thirds of the total DRAM production (about 1.5 million wafers).
Industry analysts expect that the Wuxi plant's share of DRAM production will gradually decline. Until last year, the Wuxi plant accounted for the largest share of SK hynix's total DRAM production, but concerns have arisen that the U.S. government's regulations will hinder the import of 10-nanometer-level DRAM equipment. Additionally, to increase the production of high-bandwidth memory (HBM) DRAM, SK hynix has been working to expand production capacity at the Icheon plant.
In particular, if the U.S. restrictions on equipment imports continue for an extended period, there is a possibility that delays in equipment replacement and repairs will lead to setbacks in SK hynix's next-generation general-purpose DRAM production. If the Trump administration refuses to grant 'verified end user' (VEU) approval, the operations of SK hynix's Wuxi plant, which relies on U.S. equipment, may face challenges.
A source familiar with SK hynix stated, 'The monthly average DRAM production volume at the Wuxi plant has recently stagnated at around 160,000 to 170,000 wafers,' noting that 'the layers that use extreme ultraviolet (EUV) lithography equipment in the next-generation DRAM process are increasing, but the import of EUV equipment into China is being controlled by the U.S., leading to inefficiencies in the DRAM production process.'
Meanwhile, SK hynix is also hastening the operation of the M15X plant following M16. The M15X plant is expected to be completed around November, and equipment orders are anticipated to take place around that time. Industry analysts expect that trial production will begin in early next year, with some small-scale production starting in the second quarter. It is projected that the M15X will reach its maximum production capacity around 2027.