In the past, EUV lithography machines have always been the core equipment that advanced logic wafer manufacturers such as TSMC and Intel competed to purchase. However, this situation is changing. As DRAM processes continue to shrink, memory manufacturers have also begun to join the ranks of EUV purchasers. From Nanya Technology and Winbond Electronics to Samsung and SK Hynix, more and more DRAM manufacturers are accelerating their EUV deployment.
The reason behind this is not complicated. In the past, DRAM manufacturing mainly relied on traditional lithography technology, but as processes enter more advanced generations, traditional lithography processes need to achieve finer circuit patterns through more exposures, and manufacturing complexity and costs also increase accordingly. EUV can reduce the use of multiple exposures, and its value in advanced DRAM manufacturing is becoming increasingly prominent. In particular, with the growing demand for HBM and high-performance DRAM, memory manufacturers also need to improve product competitiveness through advanced processes.
The problem is that currently only ASML can supply EUV lithography machines. Equipment that was previously mainly contested by advanced logic wafer manufacturers now has a new group of buyers: DRAM manufacturers. ASML has stated that equipment supply from 2027 to 2028 may not be able to meet customer demand, and this competition around EUV lithography machines will clearly continue to heat up.
Nanya Technology and Winbond Electronics Begin EUV Deployment
Let us first look at Taiwanese DRAM manufacturers. Although Nanya Technology and Winbond Electronics cannot compare with Samsung, SK Hynix, and Micron in scale, both companies have already begun preparations for EUV introduction. This also shows that EUV is gradually moving from being an advanced process tool for a few leading memory companies to becoming an important part of the future technology roadmaps of more DRAM manufacturers.
Nanya Technology's move this time is especially significant. According to reports, the company plans to invest approximately NT$346.6 billion, equivalent to about US$10.7 billion, between 2026 and 2029 in its new DRAM fab Fab 5A. This is one of the largest investment projects since Nanya Technology was founded, and also one of the larger single investment plans in Taiwan's DRAM industry in recent years. The main task of the new fab is to promote the development of advanced DRAM processes and gradually introduce EUV equipment.
According to Nanya Technology's plan, Fab 5A will be built around process generations such as 1B, 1C, 1D, and 1E. At present, the company's 1C process has entered the trial production stage, and development of the 1D process is also nearing its final stage. The new fab is expected to begin wafer production in the second half of 2027, reach a monthly capacity of 30,000 wafers in 2028, further increase in 2029, and ultimately target 45,000 wafers per month. For Nanya Technology, this capacity expansion is not only about increasing wafer output, but more importantly about using the new fab to complete process upgrades and enhance competitiveness in markets such as DDR5 products.
Winbond Electronics' EUV introduction timetable is relatively later, but related preparations have already begun. According to MoneyDJ, Winbond Electronics General Manager Chen Pei-Ming said that the company's 14nm process will be divided into two technology generations, one of which will not use EUV, while the other will introduce EUV. If research and development progress goes smoothly, official introduction is expected in 2030.
It is worth noting that Winbond Electronics and ASML have already been cooperating on EUV for about three and a half years. The company has sent personnel to ASML for training and has conducted equipment trial runs and measurements. Chen Pei-Ming also revealed that ASML promised that the first EUV machine could be delivered in about two years, while subsequent equipment, based on current lead times, would require about three and a half years. In other words, although Winbond Electronics has set the official EUV introduction time for 2030, equipment procurement, personnel training, and process preparation all need to be carried out in advance.
At the same time, Winbond Electronics is also advancing the expansion of its Kaohsiung fab. The company previously approved related investment of more than NT$70 billion for civil construction of the Module B plant, mechanical and electrical facilities, and procurement of some long-lead-time equipment. For a memory manufacturer like Winbond Electronics, upgrading to advanced processes is not something that can be completed simply by buying a lithography machine; supporting fab buildings, production equipment, and process development are also required. The long EUV introduction cycle also means that companies must arrange investment in advance.
Samsung and SK Hynix Step Up Procurement, EUV Equipment Lead Times Become Increasingly Tight
If Nanya Technology and Winbond Electronics represent the further expansion of EUV applications, then Samsung and SK Hynix are the most important purchasing forces in this round of equipment competition. The two South Korean memory giants are increasing their procurement of EUV equipment, driven by the dual needs of advanced DRAM process upgrades and future capacity expansion.
According to a November 8 report by South Korea's Chosun Economy, Samsung Electronics and SK Hynix are stepping up orders for EUV lithography machines from ASML, with each company involving investment scale of 10 trillion to 20 trillion Korean won. SK Hynix previously disclosed in March this year that it would purchase EUV equipment worth about 11.95 trillion Korean won, with a delivery deadline of December 31, 2027. As supply of key equipment tightens, the delivery cycle for some equipment has already reached up to twice the previous length, and the two companies are also considering placing orders in advance and making additional purchases based on actual demand.
Samsung's equipment demand is closely related to its Pyeongtaek campus expansion plan. Samsung previously announced a plan to invest 450 trillion Korean won in South Korea over the next five years, including the fifth production line at the Pyeongtaek campus (P5), which aims to begin operations in 2028. According to reports, the investment scale for a single P5 fab building exceeds 60 trillion Korean won, and the first-phase cleanroom is expected to be completed in the first half of 2027. As fab construction progresses, subsequent equipment move-in will also gradually unfold, and EUV lithography machines are naturally important equipment among them.
Why do Samsung and SK Hynix attach so much importance to EUV? One very direct reason is that advanced DRAM processes are becoming increasingly dependent on EUV. Taking SK Hynix's 1c DRAM as an example, TrendForce previously pointed out that the company plans to use more than five EUV layers in this generation of products, about two more layers than the previous generation. As processes continue to shrink, the number of EUV application layers increases, meaning that DRAM capacity of the same scale may also require more EUV equipment.
This is also why memory manufacturers now need to lock in equipment in advance. DRAM manufacturing does not mean purchasing equipment only after a new fab is built; the delivery, installation, debugging, and process verification of lithography machines all require considerable time. If equipment cannot arrive as planned, the entire ramp-up schedule of the new fab may be affected. For Samsung and SK Hynix, which are advancing next-generation DRAM and HBM products, equipment supply has become a factor that must be considered in capacity planning.
ASML's capacity expansion, however, still cannot fully meet market demand. In its third-quarter earnings explanation, the company stated that EUV equipment supply from 2027 to 2028 may not be able to meet customer demand. This year ASML is expected to ship about 65 EUV machines, an increase of nearly 50% compared with last year's 44. Even if the company plans to increase capacity by 30% in 2027 and is studying a further 30% capacity increase in 2028, it will still be difficult to fully cover customer demand.
This means that competition in the EUV equipment market is entering a new stage. In the past, advanced logic wafer manufacturers such as TSMC and Intel were the main forces in EUV procurement. Now DRAM manufacturers are also increasing investment, and companies such as Nanya Technology and Winbond Electronics have even begun preparing for EUV introduction in the coming years. For ASML, the memory market undoubtedly provides a new source of demand; but for chip manufacturers, whether they can obtain equipment in advance may directly affect the pace of advancing next-generation processes.
EUV lithography machines are no longer just a battleground for logic chip manufacturers; DRAM manufacturers have also joined this competition.
This article comes from the WeChat public account “Semiconductor Industry Observation” (ID: icbank), author: Editorial Department
