SK hynix is strategically adjusting the production plan for its new Cheongju M15X factory.
This decision is a pragmatic pivot to prioritize certain short-term revenue over less certain long-term demand. Instead of focusing primarily on 1b DRAM, which is essential for the next-generation HBM4 memory, the company will now allocate more resources to 1c DRAM, a slightly more advanced technology. This shift is a calculated response to recent developments in the AI chip market.
So, what prompted this change? First is the shifting timeline for HBM4. HBM is a crucial, high-performance memory used in AI accelerators like GPUs. The industry had high hopes for a swift rollout of HBM4 in 2026. However, reports suggest that NVIDIA's next-generation platform, codenamed 'Rubin', is facing potential delays. Issues with HBM4 validation, power, and cooling mean the massive demand for HBM4—and thus 1b DRAM—might materialize later than expected. This lessens the urgency to build huge amounts of 1b capacity right now.
Second, while the HBM4 door is opening slower, another one has swung wide open. There is surging, immediate demand for 1c DRAM in new types of memory modules for AI servers, such as SOCAMM2. SK hynix recently announced it has already begun mass-producing these modules. This creates a clear and immediate path to monetize its 1c technology. Furthermore, competitor Samsung has been vocal about its own 1c-based HBM4 progress, adding competitive pressure on SK hynix to prove its own 1c manufacturing readiness.
Finally, SK hynix is well-equipped to make this strategic change. The company recently placed a massive order for advanced EUV manufacturing equipment, which is critical for producing 1c DRAM. This, combined with record-breaking profits in early 2026, gives the company both the technological tools and financial flexibility to re-sequence its production roadmap.
In essence, SK hynix is making a smart, defensive move. It's choosing to serve a guaranteed, growing market for 1c-based server memory today, rather than betting everything on the uncertain timing of HBM4. This allows the company to maximize the new fab's utilization and revenue in the near term, while retaining the flexibility to pivot back to HBM4 when that market fully matures.
- DRAM (1b/1c): Stands for Dynamic Random-Access Memory. 1b and 1c refer to the 5th and 6th generations of the 10-nanometer class process technology, respectively. A smaller process allows for more advanced, efficient chips.
- HBM (High Bandwidth Memory): A high-performance type of memory that stacks memory chips vertically to achieve much faster data transfer speeds, essential for AI and high-performance computing.
- SOCAMM2: A new, compact memory module standard designed for AI servers and laptops, offering high performance and power efficiency using LPDDR chips.