SK Hynix, a chip manufacturer, announced on Tuesday (March 24) that it will purchase ASML’s Extreme Ultraviolet Lithography (EUV) machines worth 11.95 trillion Korean won (approximately 79.7 billion US dollars). This deal marks the largest single order disclosed by ASML’s customers.
According to regulatory filings, SK Hynix stated that the procurement of these equipment will be completed by December 31, 2027, for mass production of new products. Reuters reported in January that the company planned to advance the start of operation of its new factory in Yongin to February 2027 to meet the increasing demand for storage chips.
The EUV machines are used in manufacturing chip circuits. Ryu Young-ho, a senior analyst at NH Investment & Securities, told Reuters that this order will be supplied to both the Yongin factory and the M15X factory in Cheongju, the latter mainly producing “High Bandwidth Memory” (HBM) required for artificial intelligence (AI).
He pointed out, “Therefore, it is expected that the procured EUV equipment will be used for the production of HBM and advanced Dynamic Random Access Memory (DRAM).”
The EUV lithography machines produced by ASML, such as the TWINSCAN NXE series, are crucial for manufacturing chips with advanced processes of 7 nanometers and below. ASML’s previous reports showed that by the end of 2025, the total backlog of EUV orders amounted to 38.8 billion euros.
Since 2019, under continuous pressure from the US government, the Dutch government has not approved ASML to export EUV licenses to China. So far, no EUV lithography machines have been shipped to mainland China.
Apart from the most advanced EUV machines, restrictions on the slightly older generation of Deep Ultraviolet lithography (DUV) machines are also tightening. For the most advanced immersion-type models in DUV (such as NXT:2000i and subsequent models), since September 2023, the Dutch government has implemented new export controls, requiring ASML to obtain licenses for shipment, with applications for advanced semiconductor plants in China fundamentally being “presumed rejected.”
By 2025 and 2026, restrictions extended to after-sales services. Currently, when ASML provides maintenance services, software updates, or part replacements for some advanced DUV equipment already installed in China, it faces significant limitations, directly threatening the long-term operation of China’s existing production lines.
As a technology ally accredited by the United States and the Netherlands, SK Hynix will only use these equipment domestically. Although SK Hynix has factories in China, such as in Wuxi, these advanced EUV equipment are prohibited from being installed on their production lines in China.
As of 08:22 Greenwich Mean Time, ASML’s stock in Amsterdam rose by 0.9% to 1,185.60 euros. Meanwhile, following reports from the Korea Economic Daily that SK Hynix might raise as much as $10 billion through a US listing, SK Hynix’s stock closed up by 5.7%.