South Korean memory chipmaker SK Hynix is set to concentrate on the quality-first strategy for High Bandwidth Memory (HBM), focusing on the development and mass production of advanced HBM memory while gradually phasing out traditional HBM products, according to a report by The Elec on September 4th. Unlike Samsung Electronics, which plans to outsource the assembly and testing process of HBM memory to its subsidiary STeco, SK Hynix intends to handle all production processes in-house, taking a more conservative approach to increasing HBM memory capacity.

Despite this conservative stance, SK Hynix is moving forward with plans to convert its Iksan M10F factory, currently producing DRAM products, to HBM production to boost the supply of HBM3E memory. The infrastructure transformation at the M10F factory has already begun, with a target to start mass-producing HBM3E memory by the fourth quarter of 2025. An anonymous employee from a partner company has confirmed that they have received procurement orders from SK Hynix, with formal purchases expected to start in the fourth quarter of this year and equipment installation scheduled for the first quarter of 2025.

Currently, SK Hynix's HBM memory production capacity stands at 140,000 wafers per month. Industry insiders estimate that once the M10F factory is fully operational, it could add a capacity of 10,000 wafers per month, which would be a 7% increase in production. This strategic move is expected to strengthen SK Hynix's position in the high-performance memory market, catering to the growing demand for advanced memory solutions in various industries.