News

SK Hynix Reportedly Rebalancing Strategy, Planning Massive 1c DRAM Capacity Expansion at M14, M15X, and M16 Fabs

Friday, November 28, 2025 at 09:52 AM

Citing industry sources, SK Hynix plans to expand its 10nm-class 6th generation (1c) commodity DRAM capacity to a maximum of 190,000 wafers/month by the end of next year, with an expansion of 130,000 wafers/month slated for the M14 fab. This reported shift adjusts a prior HBM-centric strategy, as the company seeks to capitalize on the steep rise in commodity DRAM prices.

Context

SK Hynix is reportedly shifting its strategy, moving away from an exclusive focus on High Bandwidth Memory (HBM) to significantly expand its 10nm-class 6th-generation (1c) DRAM production for commodity products. This rebalancing is driven by a steep rally in commodity DRAM prices and optimistic market forecasts. The company plans to increase its 1c DRAM capacity from approximately 20,000 wafers/month currently to an estimated 190,000 wafers/month by the end of 2026. This expansion will primarily occur across its M14, M15X, and M16 fabs. Specifically, M14 is slated for ~130,000 wafers/month, M15X for ~30,000 wafers/month, and M16 for over 10,000 wafers/month. The 1c node will target commodity DDR5, LPDDR5X, and GDDR7, with mass shipments of LPDDR5X/GDDR7 expected to commence in the first half of 2026. Market projections suggest SK Hynix could see operating profits in the ~70 trillion won range with margins around 70% in early 2026, indicating a strong financial outlook for this strategic pivot.