Samsung Lands $7.4B EUV Deal for AI Chip Fab Expansion
Samsung Electronics has placed an order worth over 10 trillion won (approximately $7.4 billion) for nearly 20 extreme ultraviolet (EUV) lithography machines to equip Phase 1 of its Pyeongtaek Campus Fab 5. Industry sources shared on Friday that the overall lithography equipment count for the facility, including deep ultraviolet systems, will reach around 70 units. The new tools will power Samsung’s sixth-generation 10-nanometer-class DRAM process and enable volume production of HBM4 memory chips that will support Nvidia’s upcoming Rubin GPU platform.
This large-scale purchase follows a similar move by its domestic rival, SK Hynix, which revealed in late March an order of about 11.9 trillion won ($7.9 billion) in EUV equipment. That deal, set to run through December 2027, stands as the largest single EUV commitment publicly confirmed to date. SK Hynix aims to nearly double its EUV capacity to around 40 machines to solidify its foothold in advanced DRAM and high-bandwidth memory production.
Competition Intensifies in the HBM Market
The back-to-back orders illustrate how fiercely both chipmakers are competing in the expanding high-bandwidth memory (HBM) segment, crucial to powering next-generation AI infrastructure. Currently, Samsung operates roughly 40 EUV machines—about twice as many as SK Hynix—and this new Fab 5 investment is designed to maintain that lead. Equipment deliveries to the new facility are expected to begin in the second quarter of 2027, coinciding with the completion of the cleanroom.
“In the past, it was common to decide on NAND flash lines first when building a new fab, but this time the decision was made to expand the DRAM line first due to the expected increase in HBM4 shipments,” an industry source said. This shift highlights how rapidly AI-related demand is reshaping semiconductor strategies worldwide.
ASML’s Expanding Backlog and Industry Impact
The recent contracts deepen ASML’s already extensive backlog. Entering 2026, the company held €38.8 billion in pending orders following a record €13.2 billion in fourth-quarter bookings for 2025—almost double most analyst forecasts. The company has projected 2026 revenue between €34 billion and €39 billion, with most new equipment slots now allocated for 2027 delivery.
As lead times extend to roughly a year, chip manufacturers face growing pressure to place orders early. Those that hesitate risk falling behind in the race to produce next-generation AI memory and logic chips. Consequently, the latest deals signal not just expanding demand but also the urgency driving the global semiconductor arms race.
