SK Hynix is considering Intel as the supplier for its next-generation HBM base chips.
1 hours ago
According to Citrini analyst Jukan, SK Hynix is working to diversify its foundry suppliers for base chips used in high-bandwidth memory (HBM), which are constructed by vertically stacking multiple memory chips. The company is reportedly considering outsourcing production of some base chips for its 7th-generation HBM, HBM4E, to Intel’s foundry. Until now, SK Hynix has relied entirely on TSMC for outsourced base chip manufacturing. This move is viewed as an effort to build a multi-supplier foundry strategy, reduce supply chain concentration on TSMC, and strengthen SK Hynix’s pricing bargaining power. According to industry sources as of August 31, SK Hynix is advancing a plan to potentially have HBM4E base chips manufactured jointly by TSMC and Intel, starting as early as the HBM4E generation. As the market expects the cost burden of HBM4E base chips to rise further, and since HBM products are largely covered by long-term supply agreements (LTAs), SK Hynix cannot immediately pass higher foundry costs to customers through price increases. Therefore, industry observers argue that if Intel ultimately joins SK Hynix’s base chip supply chain, the company will gain more options in cost competitiveness and supply stability.
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