SK Hynix is considering Intel as the supplier for the next-generation HBM base chip.

BlockBeats News, August 31st. According to Citrini analyst Jukan, SK Hynix is reportedly working on diversifying the foundry suppliers for the base chips used in High Bandwidth Memory (HBM), which are constructed by vertically stacking multiple memory chips.

It is reported that the company is considering outsourcing a portion of the base chip production for the 7th generation HBM, namely HBM4E, to Intel foundries. So far, SK Hynix has relied entirely on TSMC for outsourcing the base chip production. This move is seen as an effort to establish a multi-vendor foundry strategy to reduce the supply chain's reliance on TSMC and strengthen SK Hynix's bargaining power in terms of pricing.

According to industry sources on August 31st, SK Hynix is advancing a plan where the base chips for HBM4E may be 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 increase further. Due to the fact that HBM products are mainly covered by Long-Term Supply Agreements (LTA), SK Hynix also finds it difficult to immediately pass on higher foundry costs to customers by raising product prices. Therefore, industry observers believe that if Intel ultimately joins SK Hynix's base chip supply chain, the company will have more options in terms of cost competitiveness and supply stability.