SK Hynix has completed verification of its 375-layer NAND flash memory and plans to begin mass production by late 2026, according to TrendForce. The milestone marks a structural shift in semiconductor manufacturing as the company replaces tungsten with molybdenum, ending a materials cycle that has lasted nearly 25 years.
The move follows Samsung, which began using molybdenum in its 286-layer NAND chips that entered production in April 2024. SK Hynix’s adoption represents its first implementation of the material in NAND structures.
Design revision reflects manufacturing challenges
The original design targeted 400 layers but was scaled back to 375 due to fabrication complexity. Despite the reduction, the product establishes a roadmap toward higher-density chips, with 480-layer and 604-layer NAND already in development and expected to rely more heavily on molybdenum.
The transition comes as tungsten approaches its physical limits in advanced scaling. Molybdenum offers lower electrical resistance, removes the need for diffusion barriers, and performs better under high temperatures, making it more suitable for increasingly complex 3D architectures.
Equipment makers emerge as key beneficiaries
The shift is driving demand for advanced deposition tools and materials, positioning upstream suppliers to capture a larger share of value.
Lam Research has introduced a high-volume atomic layer deposition (ALD) system for molybdenum under its ALTUS Halo product line. The company says the technology can cut resistance by more than 50% compared to tungsten and is already deployed in fabrication plants in South Korea and Singapore. Industry analysts note that Lam currently leads as the only supplier offering molybdenum ALD systems in mass production.
Applied Materials is also expanding its footprint with its Spectral ALD platform, targeting molybdenum integration in transistor contact layers for advanced 2-nanometer logic chips. This highlights how the material shift is extending beyond memory into broader semiconductor applications.
The ALD equipment market is projected to grow from $10.34 billion in 2026 to $20.79 billion by 2034, reflecting rising demand tied to advanced chip architectures.
Chemical suppliers see rising demand
Entegris is supplying molybdenum oxychloride, a solid precursor optimized for 3D NAND and DRAM production. The transition to molybdenum requires changes across multiple process steps, including polishing, etching, slurry formulation, and filtration, increasing demand for specialty consumables.
Limited impact on mining sector
Despite its growing role in semiconductors, molybdenum demand from the chip industry remains small compared to its use in steel production. Global semiconductor demand is projected to reach about 80 tons by 2030, far below the millions of tons consumed annually in alloys.
Samsung used around 4 tons of molybdenum in 2023 and is expected to reach 10 tons this year, while SK Hynix’s usage remains near 4 tons.
Performance gains for memory makers, but valuation tied to cycles
Memory producers including SK Hynix and Micron are adopting molybdenum to improve performance, including higher bandwidth and storage density. However, their market outlook remains tied to cyclical pricing and demand trends, particularly in high-bandwidth memory driven by artificial intelligence workloads.
Micron, the only U.S.-listed pure-play memory manufacturer, has incorporated molybdenum into its latest NAND products but continues to align its guidance with broader memory market conditions.
Industry realignment driven by scaling limits
The transition from tungsten to molybdenum reflects a broader realignment across NAND, DRAM, and logic manufacturing as chipmakers push toward denser and more efficient designs. The change is widely seen as necessary to sustain scaling in increasingly complex 3D structures.
While memory manufacturers benefit from improved performance, the strongest financial gains are expected upstream, where equipment makers and chemical suppliers are directly tied to the adoption curve.
Explore how semiconductor innovation drives digital asset markets in 2026—start analyzing opportunities on Toobit’s crypto insights academy today.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
