Jeju Semiconductor, SK Hynix Deepen Partnership; Target LPDDR5 Mass Production by 2030

Jeju Semiconductor is expanding its partnership with SK hynix to produce LPDDR5 memory, aiming for mass production in 2030.

This move is driven by the AI boom, which is pushing SK hynix to focus its advanced factories on HBM, leaving space for partners to produce older-generation DRAM.

U.S. export controls on China also play a key role, steering SK hynix's China-based fab toward producing legacy chips like LPDDR5.

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Jeju Semiconductor has announced an expanded partnership with SK hynix to produce LPDDR5 memory, a move that could significantly boost its revenue.

This decision is a direct result of the massive AI boom. Here’s how it works. First, the incredible demand for AI chips requires a special type of memory called HBM (High Bandwidth Memory). Major players like SK hynix are dedicating their most advanced, cutting-edge factories to producing as much HBM as they can.

This creates a capacity squeeze. With advanced factories focused on HBM, there's less room to produce slightly older, but still essential, memory like LPDDR4X and LPDDR5. This is where Jeju Semiconductor comes in. They can step in to fill this gap, effectively taking over production of these “legacy” chips.

The location of production is also strategic. The partnership will likely use SK hynix’s factory in Wuxi, China. Due to U.S. export controls, this factory cannot receive the latest EUV (Extreme Ultraviolet) chipmaking equipment. This means it's perfectly suited for producing older-generation DRAM, which doesn't require EUV technology. The policy essentially creates a protected space for this type of manufacturing.

Finally, there's a strong, long-term market for these chips. While the newest flagship smartphones will move to LPDDR6, a huge number of mid-range phones, cars, and other electronics will continue to use LPDDR5 for years to come. This provides a stable demand stream for Jeju. For Jeju, this could mean growing its revenue from around KRW 300 billion to KRW 1 trillion by 2030.

HBM (High Bandwidth Memory): A high-performance type of memory used alongside processors in AI and high-performance computing systems.
LPDDR (Low Power Double Data Rate): A type of memory optimized for low power consumption, commonly used in mobile devices like smartphones and tablets.
EUV (Extreme Ultraviolet) Lithography: An advanced chipmaking technology that uses a specific wavelength of light to print extremely small circuits, necessary for cutting-edge chips.