SK Hynix to Build New R&D Center in Silicon Valley
The author is an analyst of NH Investment & Securities. He can be reached at hwdoh@nhqv.com. -- Ed.
Samsung Electronics and SK Hynix have announced plans to invest in a US foundry fab and R&D center, respectively, moves that should positively impact related equipment and material players.
SEC announces foundry investment
On May 21, Samsung Electronics (SEC) and SK Hynix announced US investment plans. At the ‘Korea-US Business Round Table’ held by the US Department of Commerce, SEC unveiled plans to invest US$17bn in a foundry fab. While specific details, including location and timing, have yet to be announced, there is a high possibility that further information will be released in the next two to three months, and that the investment will center on Austin, Texas, where the company already has a foundry fab. The new fab is likely to be large (100K wpm) and it is expected to run the latest EUV processes at 5nm or below.
As SEC’s existing Austin fab focuses on 14nm and above processes, it is unable to win orders for the latest process chips under 7nm developed by US companies such as Apple, Qualcomm, and AMD. In order to align with the US government’s reshoring policies for semiconductors, it is essential for SEC to have a US fab capable of running the latest processes. Related beneficiaries include ASML, AMAT, Lam Research, Hanyang ENG, and KoMiCo.
SK Hynix announces investment in new R&D center
SK Hynix announced a plan to establish a new R&D center in Silicon Valley, California, with investment of US$1bn. The center’s research is likely to focus on machine learning and NAND solutions. As SK Hynix decided to acquire Intel’s NAND business in 2020, it is estimated that the goal is to maximize synergy effects by establishing a research center near Santa Clara, where Intel’s headquarters are located.
Recently, DRAM and NAND processes have become extremely difficult, and in addition to traditional memory device and design technologies, securing solutions, computer architecture, software, and material technologies is becoming increasingly important. Micron, which has a high level of such technology and is synergizing with various technologies from R&D institutes located in a variety of countries, is in a technologically advantageous position.