SK Hynix is considering Intel as a second foundry source for the base dies used in its high-bandwidth memory (HBM) products, according to Citrini analyst Jukan on Aug 31. The company is looking at outsourcing part of the base-die production for HBM4E, the seventh-generation HBM, to Intel's foundry business. So far, SK Hynix has relied entirely on TSMC for outsourced base-die manufacturing. The potential addition of Intel is viewed as part of a push to build a multi-supplier foundry strategy, one that would reduce the supply chain's concentration around TSMC and improve SK Hynix's pricing leverage. Industry sources said SK Hynix is working on a plan where TSMC and Intel jointly produce HBM4E base dies, possibly starting as early as the HBM4E generation. HBM is built by stacking memory chips vertically on a base die. Market expectations point to higher base-die costs for HBM4E. Since HBM products are largely covered by long-term supply agreements, SK Hynix cannot quickly pass higher foundry costs to clients through price increases. Industry observers believe that if Intel eventually joins the base-die supply chain, SK Hynix would gain more options in both cost competitiveness and supply stability.
SK Hynix is looking to diversify the foundry suppliers for the base dies used in its high-bandwidth memory (HBM) products, with Intel emerging as a candidate, according to a report from Citrini analyst Jukan on Aug 31. HBM is built by vertically stacking multiple memory chips.
SK Hynix has reportedly considered handing production of part of its HBM4E base dies to Intel Foundry. Until now, the company has relied entirely on TSMC for outsourced base-die manufacturing. The move is seen as part of an effort to build a multi-supplier foundry strategy, reducing how much of its supply chain is concentrated on TSMC and strengthening SK Hynix's ability to negotiate pricing.
TSMC and Intel could split HBM4E base-die output
Industry sources said on Aug 31 that SK Hynix is pushing ahead with a plan under which HBM4E base dies could be made by both TSMC and Intel, possibly starting as early as the HBM4E generation.
Market expectations point to a further increase in the cost burden for HBM4E base dies. But because 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 said that if Intel eventually joins SK Hynix's base-die supply chain, the company would gain more options in cost competitiveness and supply stability.
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