SK Hynix is working to diversify the foundry suppliers for the base dies used in its high-bandwidth memory (HBM) products, according to Citrini analyst Jukan. The company is considering outsourcing part of the base-die production for HBM4E, its seventh-generation high-bandwidth memory, to Intel's foundry. So far, SK Hynix has relied entirely on TSMC for outsourced base-die production. Industry sources said on Aug. 31 that SK Hynix is advancing a plan under which HBM4E base dies could be made by both TSMC and Intel, with the earliest adoption possibly starting with the HBM4E generation. The potential shift is seen as an effort to build a multi-vendor foundry strategy, reducing supply-chain concentration at TSMC and strengthening SK Hynix's pricing power. Market expectations point to higher base-die costs for HBM4E. Since HBM products are mostly covered by long-term supply agreements, SK Hynix cannot quickly pass higher foundry costs on to customers through price increases. Industry observers say that if Intel eventually joins the base-die supply chain, SK Hynix would gain more options in cost competitiveness and supply stability.
SK Hynix Evaluates Intel as a Second Foundry for HBM4E Base Dies
SK Hynix is moving to diversify the foundry suppliers for the base dies used in its high-bandwidth memory (HBM) products, according to Citrini analyst Jukan. The company is evaluating whether to outsource part of the production of base dies for HBM4E, its seventh-generation HBM, to Intel Foundry.
HBM devices are built by stacking multiple memory chips vertically, and the base die is a key part of that structure. So far, SK Hynix has depended entirely on TSMC for outsourced base-die production. Adding Intel is seen as an effort to build a multi-vendor foundry strategy, aimed at reducing supply-chain concentration at TSMC and strengthening SK Hynix's bargaining power on pricing.
Long-Term Agreements Limit the Ability to Pass on Costs
Industry sources said on Aug. 31 that SK Hynix is advancing a plan under which HBM4E base dies could be produced jointly by TSMC and Intel, with the earliest adoption possibly coming from the HBM4E generation.
Market expectations point to higher base-die costs for HBM4E. Because HBM products are largely covered by long-term supply agreements, SK Hynix cannot immediately raise product prices to pass the higher foundry costs on to customers. Industry observers say that if Intel eventually enters SK Hynix's base-die supply chain, the company would have more options in cost competitiveness and supply stability.
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