Samsung Electronics and SK Hynix are undertaking their largest-ever equipment investments in 2026, with the investment amount stated as KRW110 trillion in the title, but the memory supply increase is not expected to materialize until 2028. By then, new South Korean plants and expanded capacity at China's ChangXin Memory Technologies (CXMT) are expected to come online simultaneously, potentially triggering price competition in commodity DRAM. The source does not state the cause of the delay in the supply increase.
memorycommodity DRAMSamsung Electronics, SK Hynix and 3 totalDigiTimes AsiaCapacity Change
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Samsung Electronics, SK Hynix, ChangXin Memory Technologies (CXMT)
According to an exclusive Reuters report, CXMT is expected to start mass production of its first-ever HBM memory in the HBM3E form factor within the next two months, meaning it will officially start by the end of the year. CXMT began risk production of HBM3E memory in August, but the company has struggled with the yield of HBM3E memory modules, and this situation remains similar today, according to the latest report. The yield challenge stems from the immaturity of the through-silicon via (TSV) technology it employs: front-end manufacturing achieves around 30% yields, while back-end processing adds about 70% on top of the original 30%. Data suggests CXMT is attempting to achieve HBM3E with only 3,000 TSVs per layer and trying to pack 8 layers into the regular 8-high HBM3E configuration (compared with Samsung's roughly 5,000 TSVs per layer on HBM2 and SK hynix's more than 8,000 TSVs per layer on HBM3). Given these challenges, the company is unlikely to transition to a higher-capacity 12-high HBM in the near term as it addresses engineering issues. JEDEC's official data for HBM3E indicates a 1,024-bit width and speeds from 9.2 Gbps per pin to 12.4 Gbps, with most standard configurations targeting 9.6 Gbps per pin, total bandwidth around 1.2 TB/s, and capacities from 24 GB using 8-high stacks to 36 GB using 12-high stacks of 24 Gb layers. The mass production start is an expectation, not a confirmed completed event.
SK Hynix reported Q3 2026 revenue up 328% Y/Y to ₩104 trillion ($78.9 billion), surpassing ₩100 trillion for the first time, with net income up 216% to ₩39.8 trillion (c$30 billion), an operating margin of 80 percent, and a net cash position of ₩98.7 trillion ($74 billion), effectively debt-free. The company abandoned the US IPO of its Solidigm subsidiary and discontinued its review, citing careful consideration of recent financial market conditions and other factors; the IPO had been intended to raise external capital for expanding Solidigm's production facilities. SK Hynix said HBM4 is becoming its mainstream product as of this quarter and should overtake HBM3E in volume and revenue next quarter; it has 14 LTAs (Long-Term buying/supply Agreements) covering more than half of its memory capacity for 2027 and 2028, and it sees memory demand exceeding supply through to 2030. Its spending decisions include returning most of its Kioxia share gain to shareholders, with ₩100 trillion ($75.4 billion) going to shareholders this year; ramping the M15X fab's output to maximum capacity by the end of the year to increase HBM4 production; raising the proportion of its 321-layer NAND process to more than half of its domestic production capacity in the fourth quarter to increase high-performance, high-capacity eSSD supply; and rising production output in 2027 as the Yongin Phase 1 plant enters full-scale operation. Paying for a US fab for Solidigm remains unsolved, with the company still able to use about another $30 billion, per the source.
According to RT NEWS, CXMT, despite HBM3E yields of just 20-30% compared with SK hynix's 70%, reportedly plans limited production within 2 months, with samples already sent to domestic AI chipmakers. The source does not state the cause. This production plan is a reported plan and has not been confirmed as realized mass production.
HBM3ECXMTTrendForce Official (Market Data)Capacity Change
According to Bloomberg, citing people familiar with the discussions, Solidigm, the US-based subsidiary of SK Hynix, is in talks with the US Department of Commerce over a potential US$45 billion investment in a new NAND flash memory fabrication plant. The matter remains at the discussion stage as a potential investment, with no confirmed approval or construction start stated in the source.
NAND flash memorySolidigm, SK HynixDigiTimes AsiaCapacity Change
According to Nikkei, citing industry sources, rising component costs are reportedly prompting leading PC brands including HP, ASUS, and Acer to move part of their production from Thailand and Vietnam back to China, while Dell is also reportedly considering a similar move (reported move, not confirmed as implemented). The stated cause is that surging AI demand drives shortages of memory and storage chips, raising PC bills of materials: per TrendForce, CPU, DRAM, and SSD costs accounted for approximately 68% of a mainstream notebook's BOM in the third quarter of 2026, up from 45% in the first quarter of 2025. The development partially reverses the 'China+1' diversification strategy pursued amid U.S.-China tensions and trade restrictions. TrendForce estimates the share of global notebook production outside China will decline from approximately 24% in 2025 to 21% in 2026, potentially falling below 20% in 2027, and expects global notebook shipments to decline by a low-single-digit percentage in 2027, potentially widening to a high-single-digit rate if elevated DRAM and CPU prices are passed on to consumers. Separately, Quanta reportedly suspended HP notebook production for about a week in September amid a dispute over rising component costs, resuming after further negotiations; servers accounted for over 80% of Quanta's revenue in the second quarter of 2026, and supply chain sources suggest it has gained greater leverage in notebook pricing negotiations. Chinese ODMs (Luxshare, Huaqin Technology, Longcheer Technology) are reportedly offering lower upfront costs, including waiving engineering and tooling fees, and benefit from access to domestically produced memory chips.
memory chipsstorage chipsDRAMHP, ASUS and 11 totalTrendForceCapacity Change
According to ZDNet Korea, reported on October 26, Samsung Electronics and SK Hynix are targeting the second quarter of 2027 to begin volume shipments of eight-layer HBM4 memory to Nvidia, as the AI chipmaker reassesses its memory strategy for next-generation Rubin Ultra accelerators. This is a plan/target and actual shipments have not yet occurred.
8-layer HBM4 memorySamsung Electronics, SK Hynix and 3 totalDigiTimes AsiaCapacity Change
According to ZDNet, Samsung and SK hynix are preparing to ship 8-Hi HBM4 for Rubin Ultra in 2Q27, departing from the original 12-Hi HBM4E plan; 8-Hi HBM4 was initially absent from NVIDIA's plans, but talks gained traction in 3Q26. The source cites thermal challenges and lower yields in 12-Hi stacks, potentially easing supply constraints. Although both Samsung and SK hynix have completed NVIDIA's qualification for 12-Hi HBM4, their 8-Hi products require separate certification; a source said NVIDIA is expected to deploy both 8-Hi HBM4 and 8-Hi HBM4E in Rubin Ultra-based NVL rack-scale systems depending on rack configuration. TrendForce says 8-Hi configurations use fewer DRAM dies, lowering cost per stack and GPU bill of materials, and given tight HBM supply, 8-Hi setups are expected to be a priority for evaluation by many GPU and ASIC vendors in 2027; ZDNet reports 12-Hi HBM4 remains mainstream in 2026, with 8-Hi adoption expected to rise sharply from mid-2027. Economy Tribune, citing Daishin Securities, suggests Anthropic's in-house AI chip could also feature 8-Hi HBM4, raising the prospect of Samsung supplying both foundry services and memory. Separately, per Wccftech, NVIDIA trimmed Vera Rubin's HBM4 bandwidth specifications: an archived September 1 version listed the Vera Rubin NVL72 system with 20.7 TB of HBM4 capacity and 1,580 TB/s bandwidth, the Vera Rubin Superchip at 576 GB and 44 TB/s, and each Rubin GPU at 288 GB and 22 TB/s; NVIDIA has since lowered per-GPU HBM4 bandwidth to 19.2 TB/s and NVLink 6 throughput from the originally advertised 3.6 TB/s to 3 TB/s, cuts of roughly 13% and 17% respectively, and up to 26% for HGX Rubin NVL8 systems, with changes dating back to September. IT Home notes NVIDIA revised the Vera CPU memory specification from a fixed 1.5 TB of LPDDR5X per chip to 'up to 1.5 TB', and that lowering bandwidth requirements could allow more HBM4 products to qualify for Rubin GPUs, potentially boosting overall production output.
HBM4HBM4ELPDDR5XNVIDIA, Samsung and 4 totalTrendForceCapacity Change
In an early Friday announcement dated 23 October 2026, SK hynix said it had decided to abandon plans for a potential initial public offering (IPO) of Solidigm, its U.S.-based enterprise SSD subsidiary, citing unfavorable stock market conditions and semiconductor share price trends. At the same time, SK hynix confirmed it plans to build a new fab for Solidigm in the U.S. to address growing demand for enterprise SSDs. SK hynix stated that although an IPO could have helped finance a new fab in the U.S., its subsidiary's expansion remains a priority; the company has discontinued its review of both pre-IPO financing and an IPO and will continue to evaluate alternative funding mechanisms. The source states that the planned fab's capacity, investment requirements, and construction schedule have not yet been disclosed. Solidigm specializes in high-capacity data center SSDs based on floating gate 3D QLC NAND memory, and its existing manufacturing capacity is barely sufficient to address its projected needs.
enterprise SSD3D QLC NANDSolidigm, SK hynixTom's HardwareCapacity Change
Germany's Merck plans to expand the use of molybdenum dioxide dichloride (MoO₂Cl₂) precursors from NAND flash memory to DRAM and logic semiconductors. Bing Han, senior vice president of the Thin Film Materials business at Merck Electronics, said at a press conference at Sono Felice Samsung in Gangnam on Oct. 21 that as device structures shrink, conductivity issues with copper and tungsten will drive greater adoption of molybdenum. Merck has established a molybdenum precursor production facility in Eumseong, North Chungcheong Province, which will be integrated with its CHEMKEEPER Vapor 200 materials delivery systems made at its Ansan plant and offered as a turnkey solution. The expansion uses land near an existing plant of M Chemicals, which Merck acquired in 2023; the site previously produced hafnium-based high-k dielectric precursors, construction began in 2024, and the facility was prepared for operation within two years. Han said Merck is planning production capacity sufficient to meet all demand from Korean customers, but the company did not disclose specific production capacity or investment figures, and it plans to eventually expand support beyond Korea to customers across Asia. As background: Samsung Electronics began using molybdenum in its 200-layer-class NAND in 2024, and SK hynix has replaced some word-line materials with molybdenum in its 300-layer-class NAND; Lam Research, Tokyo Electron and Applied Materials are among the suppliers of molybdenum deposition equipment. Hein said Merck is reviewing production capacity with customers in preparation for semiconductor materials consumption potentially doubling within the next five years.
TrendForce notes that Micron plans to begin mass producing its 1-delta (1δ) nm process in 2027, which is set to succeed its current mainstream 1-gamma (1γ) nm process. Beyond this transition, Micron intends to continue scaling its 6F² architecture before moving directly to 3D DRAM, bypassing the intermediate 4F² architecture; in contrast, South Korean and Chinese DRAM manufacturers still plan to adopt 4F² architecture, highlighting a growing divergence in process technology roadmaps among major suppliers. Micron is also developing memory solutions optimized for AI solutions, including vHBM and vEIM, to compete with SK hynix's 3D HBM and Samsung's zHBM. In NAND flash, Micron is preparing to ramp up production of its G11 generation in 2H27; by incorporating wafer bonding and stacking more than 400 layers, G11 is expected to deliver twice the bit density of G9, alongside a targeted 1.5-fold improvement in I/O speed. TrendForce believes these advances will enable Micron to close the technology gap with Kioxia and YMTC—both early adopters of hybrid bonding architectures—and strengthen its competitive position as NAND performance becomes increasingly critical to an AI-driven market. All of these remain plans/expectations, not yet realized mass production.
1-delta nm DRAM processvHBMvEIMMicronTrendForce Official (Market Data)Capacity Change
According to industry sources on Oct. 21, LS Electric is seeking to expand its semiconductor factory automation business in overseas markets, including the United States and Southeast Asia. For several years, the company has attempted to enter the market for control systems and drive components used in overhead hoist transport (OHT) systems, which handle materials in semiconductor factories; despite offering motion controllers, servo drives and motors, its domestic supply track record remains limited. Japanese companies have long dominated the OHT equipment and control component markets: Daifuku and Murata Machinery established early positions in complete OHT systems, and suppliers such as Mitsubishi Electric have provided control systems and drive components using proprietary communication protocols, creating a high barrier because replacing entire existing systems is difficult. In South Korea, Samsung Electronics subsidiary SEMES developed domestically produced OHT equipment in the 2010s, followed by companies including SFA and MX Robotics, formerly SMCore. An industry official said semiconductor manufacturers often designate suppliers of key OHT components when placing equipment orders, with Mitsubishi Electric products primarily used in South Korea and Siemens products also used in Europe. According to market research firm QY Research, the global semiconductor automated material handling system (AMHS) market is projected to grow from $3.709 billion in 2025 to $5.988 billion in 2032, with OHT's share of the overall market expected to increase from 46.86% to 48.91% over the same period. LS Electric said it is pursuing opportunities to supply complete packages of reliable automation products when domestic and overseas semiconductor companies build new factories in the United States and Southeast Asia, and is first building its track record and demonstrating the reliability of automation control technologies developed for automotive and battery production lines.
overhead hoist transport (OHT) systemsOHT control systemsdrive componentsLS Electric, Daifuku and 8 totalThe ElecCapacity Change
Samsung Electronics and SK Hynix are upgrading their NAND flash factories in China to make chips with more than 200 layers, Reuters reported on October 21, citing four people familiar with the plans. According to the report, the move would let the South Korean memory makers win back ground lost to Yangtze Memory Technologies Co (YMTC), even though US curbs on upgrading their China operations remain formally in place. This is a reported plan under way; no completion timeline is given and the US restrictions have not been lifted.
NAND flashSamsung Electronics, SK Hynix and 3 totalDigiTimes AsiaCapacity Change
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Samsung Electronics, SK Hynix, Yangtze Memory Technologies Co (YMTC)
According to Reuters, as AI-driven demand extends from DRAM to NAND and competition from China's YMTC intensifies, Samsung and SK hynix are planning upgrades at their Chinese NAND facilities: Samsung plans to shift its Xi'an plant from roughly 200-layer to 286-layer V9 NAND under an internal project dubbed "Monami"; SK hynix, already authorized to produce up to 240-layer NAND in Dalian, is reportedly planning to upgrade from its current 192-layer technology to 240 layers or more, and may seek U.S. approval for R&D on 300-plus-layer technology. TrendForce estimates China accounts for roughly 30–35% of Samsung's total NAND output and an even higher 40–45% for SK hynix. U.S. export restrictions remain a major hurdle: both chipmakers must obtain annual licenses to install U.S.-made equipment at their Chinese plants, and Washington indicated in 2025 that it would not approve technology upgrades or capacity expansions there; both companies confirmed to Reuters that upgrades were underway in close coordination with Washington but declined to disclose detailed production plans. On competition, YMTC's NAND lineup is dominated by 160- and 232-layer products, it is already producing 294-layer chips in limited volumes and plans to push beyond 300 layers. Separately, per Seoul Economic Daily, Samsung has shifted roughly 60% of its V-NAND capacity to V9 (286 layers), is ramping shipments to NVIDIA, has begun mass production and supply of V10 NAND, and is accelerating development of next-generation V11 targeting around 500 layers; per Bloter, SK hynix is stepping up its shift to 321-layer NAND, which became its largest NAND production segment in 2Q26, with roughly half of its domestic NAND capacity expected to transition to 321-layer products by year-end.
NAND flashSamsung, SK hynix and 3 totalTrendForceCapacity Change
US semiconductor ion implantation equipment maker Axcelis held a groundbreaking ceremony on Oct. 20 for its new Axcelis Asia Operations Center (AAOC) facility in the Oseong Industrial Complex in Pyeongtaek, Gyeonggi Province, South Korea, planning to expand its Pyeongtaek operations into an Asian manufacturing hub. The new facility will occupy a site of approximately 22,314 square meters with a building footprint of about 15,537 square meters, and its total floor area will be roughly five times that of the existing manufacturing facility, including equipment manufacturing facilities, warehouses, cleanrooms and a training center. Construction is expected to take about 18 months, with full operations scheduled to begin in the second half of 2028, at a total investment of approximately $35 million. The plant will primarily manufacture ion implantation equipment used in front-end semiconductor processing and will adopt lean manufacturing methods. AAOC is Axcelis' only manufacturing facility outside the United States; the company established it in 2021, began producing and shipping equipment in the second half of 2022, when the factory covered approximately 3,967 square meters with production capacity equivalent to about 20% of its US headquarters operations and 60% of output exported. Axcelis Korea's headcount has grown from 120 employees in 2022 to approximately 200 currently, with plans to increase to about 300 over the medium to long term. In September, Axcelis previously held an investment declaration ceremony with officials from South Korea's Ministry of Trade, Industry and Resources in Washington, D.C.
ion implantation equipmentAxcelisThe ElecCapacity Change
Tesla CEO Elon Musk has predicted a surge in Chinese memory chip production by 2028, raising questions over Samsung Electronics and SK Hynix's pricing power during an AI-driven dynamic random-access memory (DRAM) shortage. His remarks suggest that China's expanding capacity could offer major technology buyers alternative sources of supply and potentially ease memory costs. This is a prediction, not an implemented capacity change; the source does not state the cause.
DRAMSamsung Electronics, SK HynixDigiTimes AsiaCapacity Change
According to ZDNet citing industry sources, Samsung is considering adding GlobalFoundries as a second foundry partner for display driver ICs (DDIs) used in its OLED Galaxy smartphones, potentially ending UMC's exclusive role in manufacturing the chips; GlobalFoundries-produced DDIs could appear in Galaxy smartphones as early as late 2027, with some lower- and mid-range Galaxy A series models possibly the first to adopt the chips. Samsung is reportedly evaluating GlobalFoundries' 22nm or 28nm nodes, which have compatible manufacturing facilities in Singapore and Germany. The stated cause: mature-node demand has outpaced supply since the second half of 2025, and per ZDNet, Samsung requested expedited DDI production for its Galaxy Z Fold8 after demand exceeded expectations following its July unveiling, but UMC was unable to fulfill the request because its 22nm DDI production capacity had already reached its limit; as a result, Samsung cut its planned Galaxy Z Fold8 component production volume for September by 10%, shifting the deferred volume to October. Per Economic Daily News, institutional investors expect UMC's 12-inch capacity utilization to reach 93% by the end of 2026, supported by rising 22/28nm DDI orders from Samsung System LSI and Novatek and demand for Apple Mac-related chips on 55/65nm nodes; per TrendForce, some capacity-constrained 12-inch mature nodes showed signs of 5–10% price increases between Q2 and Q3 2026, with broader price hikes expected in 2027. These items remain reports/evaluations or expectations, not confirmed actions.
display driver IC (DDI)Samsung, UMC and 3 totalTrendForceCapacity Change
ASML published its Q3 2026 earnings on October 14, 2026, saying the unprecedented spending and investment brought about by the AI boom is not slowing down, with customers already lining up to place orders for its advanced chipmaking tools for 2029 and 2030 output; CEO Christophe Fouquet said the company would struggle to meet demand despite plans announced in July to raise capacity by 30% in 2027 and another 30% in 2028. The company also confirmed it will raise prices starting in 2027, with the full effect showing in 2028. The Q3 2026 report detailed a net profit of €4.96 billion on net sales of €11.7 billion; the company projects Q4 sales of €14.2 billion to €15.2 billion ($15.9 billion to $17 billion) and boosted its full-year sales projections from at least €43 billion to €44-45 billion. ASML's shares rose 2% on Wednesday, up almost 70% so far this year, with its €586 billion market valuation making it Europe's largest firm by market cap. Additionally, Terafab will reportedly receive its first EUV chipmaking tool from ASML in mid-2027; CFO Roger Dassen said it is "still kicking the tires on the exact size of that (Terafab) opportunity."
After posting record-high net profit in the third quarter, TSMC management projects 4Q26 revenue to land between US$52.3 billion and US$54.3 billion, representing a year-over-year increase of approximately 58% and a sequential gain of around 14%. Based on an assumed exchange rate of NT$31.8 per U.S. dollar, TSMC forecasts a gross margin of 65%–67% and an operating margin of 56.5%–56.8%, with the rapid expansion of 2nm production weighing on margins. Despite the near-term margin pressure, CEO C.C. Wei struck an upbeat tone on demand for leading-edge technologies, and TSMC now expects full-year 2026 revenue to grow approximately 44% in U.S. dollar terms, up from its previous outlook of around 40%. TSMC reiterated its 2026 capital expenditure guidance of US$60 billion–US$64 billion and reaffirmed plans to spend significantly more over 2026–2028 than in the preceding three years, underscoring its commitment to expanding capacity for long-term demand, fueled by AI including emerging agentic AI applications. In the third quarter, 2nm's share of wafer revenue climbed to 8% from 3% in 2Q26, 3nm accounted for 33%, 5nm 28% and 7nm 10%, with advanced nodes (7nm and below) contributing 79% of total wafer revenue; HPC platform revenue surged 22% sequentially to 68% of third-quarter revenue, smartphones 21%, and automotive and IoT 4% each.
ChangXin Memory Technologies (CXMT) plans to mass-produce next-generation 4F² DRAM by the end of 2026, potentially ahead of South Korean rivals Samsung Electronics and SK Hynix. The announcement has fuelled speculation that China's memory technology is approaching or surpassing South Korean capabilities, while positioning CXMT for an early entry into the emerging 3D DRAM market. This remains a plan; mass production has not yet been achieved.