Samsung, SK hynix race to lock EUV amid ASML shortage in South Korea
Samsung Electronics and SK hynix are competing to secure EUV lithography equipment from ASML, with orders between 10 trillion and 20 trillion won each, due to a supply shortage for 2027-2028. SK hynix plans to spend 11.95 trillion won by 2027. Samsung's Pyeongtaek investment includes over 60 trillion won for EUV tools. ASML expects demand to outstrip supply, with price increases starting in 2028. Both companies are advancing EUV technology for advanced DRAM production.
How this was made
The 30-second read
Why it matters
The disclosed orders represent the first public confirmation of massive capex commitments by the two largest DRAM makers, likely influencing stock valuations and sector sentiment.
Market read
First‑time disclosure of multi‑trillion‑won EUV orders reshapes expectations for DRAM supply and equipment demand.
What to watch
Potential delays in high‑NA EUV tool delivery and competition from alternative lithography technologies.
Background
ASML has announced a supply shortage for EUV tools in 2027‑2028, prompting Samsung and SK hynix to secure early delivery slots.
Ticker impact
Samsung Electronics announced new EUV lithography orders worth 10‑20 trillion won, expanding its DRAM capacity plan.
potential modest upside as investors price in advanced DRAM capacity, tempered by higher capex.
First disclosure of large EUV spend; market will assess impact on margins and growth outlook.
SK hynix disclosed a 11.95 trillion‑won EUV purchase with delivery by end‑2027, signaling aggressive DRAM expansion.
likely modest upside as the market values increased DRAM capacity, offset by capex concerns.
First report of the EUV order; investors will weigh the long‑term benefit against near‑term cash use.
Market effects
Strengthens outlook for the global DRAM and semiconductor equipment sector as demand for EUV tools rises.
South Korean semiconductor stocks may see short‑term rally, while EUV equipment supplier ASML could benefit from higher order backlog.
Highlights supply‑chain constraints for advanced lithography, relevant to investors in memory and fab equipment globally.
Counterpoint
Higher capex could pressure earnings margins, leading to a near‑term sell‑off despite long‑term growth potential.
Key entities
- companySamsung Electronics
South Korean semiconductor giant expanding DRAM capacity.
- companySK hynix
Second‑largest DRAM producer, also expanding capacity.
- companyASML
Dutch supplier of EUV lithography equipment.
