SK Hynix Rises Over 8% as It Accelerates 1c DRAM Process Transition, Expected to Become Mainstream in Q1 Next Year

TradingKey - During the Asian trading session on September 7, SK Hynix shares closed up 8.26% at 1.783 million Korean won (approximately $1,324.58). Meanwhile, the company's progress in converting to advanced DRAM process nodes has also drawn market attention.

[Source: TradingView]

According to South Korean media outlet ChosunBiz, citing industry sources, SK Hynix is rapidly increasing the production capacity share of its 1c nm process, the sixth-generation 10nm-class DRAM technology.

[Source: ChosunBiz]

Industry estimates indicate that the proportion of 1c DRAM in the company's total DRAM capacity rose from about 10% in the first quarter of this year to about 13% in the second quarter, and is expected to increase to about 24% in the third quarter and reach about 34% in the fourth quarter. By the first quarter of 2027, the 1c share is expected to rise further to about 35%, surpassing the 1b process (expected at about 33% at that time) for the first time to become SK Hynix's largest DRAM process node.

Meanwhile, the share of 1b DRAM is expected to have peaked at around 43% in the second quarter of this year and will gradually decline as the transition to 1c accelerates. SK Hynix previously confirmed during its second-quarter earnings call that DRAM products using the 1c process have officially begun shipping starting in the second quarter.

HBM is a key application area for this process node transition. SK Hynix continues to use the mature 1b DRAM in HBM4 to ensure mass production stability, while the next-generation HBM4E will adopt 1c DRAM for the first time as its core die.

During its earnings call in April this year, the company stated that it plans to supply HBM4E samples in the second half of 2026 and target mass production in 2027. Actual progress is aligned with expectations; on June 18, SK Hynix announced that it had shipped 12-layer HBM4E samples to major customers. The product achieves a peak transfer rate of 16 Gbps/pin, with power efficiency improved by more than 20% compared to the previous generation.

From an industry comparison perspective, according to industry estimates cited by ChosunBiz, as of the end of the second quarter of this year, 1c DRAM shares for Samsung Electronics and Micron (MU) stood at approximately 16% and 19% of their respective DRAM capacities, higher than SK Hynix's level of about 13% over the same period.

However, SK Hynix is accelerating its 1c process transition in the second half of the year. The report expects that by the fourth quarter, SK Hynix's 1c share is expected to reach about 34%, surpassing Samsung Electronics' approximately 31% for the same period.

With the rising share of 1c DRAM and the expanded supply of high-value-added products such as servers, AI, and HBM, the increased bit output per wafer brought by more advanced process nodes is expected to enhance cost competitiveness and improve the margin structure.

SK Hynix expects that with the expansion of HBM4 capacity in the second half of the year and increased shipments of general-purpose DRAM based on the 1c process, its bit growth rate in the second half will be higher than in the first half.

According to current industry forecasts, 1c is expected to become the company's main process node in the first quarter of next year, providing the capacity and process foundation for the subsequent mass production of HBM4E.