SK Hynix May Split HBM4E Base Chip Production Between TSMC and Intel

SK Hynix is reportedly considering diversifying the foundry suppliers for base chips used in its high-bandwidth memory, or HBM, products, according to Citrini analyst Jukan. According to ChainCatcher, the company is weighing outsourcing some base chip production for its seventh-generation HBM, HBM4E, to Intel Foundry, after previously relying entirely on TSMC for outsourced base chip manufacturing. The move is seen as an effort to build a multi-vendor foundry strategy, reduce concentration risk tied to TSMC, and improve SK Hynix's bargaining power on pricing. Industry sources said on August 31 that SK Hynix is advancing a plan in which HBM4E base chips could be jointly manufactured by TSMC and Intel, potentially starting with the HBM4E generation. Market expectations suggest the cost burden for HBM4E base chips may rise further. Because HBM products are largely covered by long-term supply agreements, SK Hynix would also have limited ability to pass higher foundry costs on to customers through immediate price increases. Industry observers said Intel's possible entry into the supply chain could give SK Hynix more options for cost competitiveness and supply stability.