SK Hynix Considers Intel as Substrate Supplier for Next-Gen HBM

According to analyst Citrini, SK Hynix is diversifying its foundry suppliers for base dies used in High Bandwidth Memory (HBM), which is built by vertically stacking multiple memory chips. The company is reportedly considering outsourcing production of some base dies for its seventh-generation HBM, HBM4E, to Intel. So far, SK Hynix has relied entirely on TSMC for outsourced base die production. This move is seen as an effort to establish a multi-supplier foundry strategy, reducing concentration risk on TSMC while strengthening SK Hynix's pricing leverage. Industry sources said on August 31 that SK Hynix is advancing a plan under which base dies for HBM4E could be manufactured by both TSMC and Intel, with the earliest possible start from the HBM4E generation. As market expectations indicate that base die costs for HBM4E will rise further, and given that HBM products are mostly covered by long-term supply agreements (LTAs), SK Hynix would find it difficult to immediately pass higher foundry costs onto customers through price increases. Therefore, industry observers believe that if Intel eventually joins SK Hynix's base die supply chain, the company would gain more options in terms of cost competitiveness and supply stability.