SK Hynix is considering outsourcing production of base dies for its next-generation HBM4E memory to Intel Foundry, in a move aimed at diversifying a supply chain currently reliant on Taiwan Semiconductor Manufacturing Co (TSMC), according to South Korea’s Herald Economy.
The proposed arrangement could see SK Hynix work with both TSMC and Intel on base-die production from as early as HBM4E, the company’s seventh-generation high-bandwidth memory (HBM) product.
The move would give SK Hynix additional options for manufacturing capacity and costs while reducing its dependence on a single foundry, the report said.
SK Hynix shares fell 1.9 per cent to about US$1,100, while the broader KOSPI declined 2.5 per cent in early trading. TSMC shares fell 1.7 per cent to approximately US$75, compared with a 0.8 per cent rise in the Taiex.
The base die is the logic layer at the bottom of an HBM stack and controls the interface between the memory and external processors such as graphics processing units and central processing units.
Its importance has grown as HBM designs have become more sophisticated. SK Hynix moved from producing base dies internally through HBM3E to outsourcing production for HBM4.
According to the Herald report, SK Hynix currently uses TSMC’s 12-nanometre-class process for the base die in its HBM4 products. Industry estimates cited by the newspaper put the cost of TSMC’s HBM4 base die at three to four times that of the core DRAM die, creating a significant cost burden as HBM4E enters production.
Much of the HBM industry operates under long-term supply contracts, potentially limiting SK Hynix’s ability to immediately pass higher foundry costs on to customers.
The potential addition of Intel could therefore strengthen SK Hynix’s position on pricing and supply security by creating a multi-vendor manufacturing structure as demand for customised HBM increases.
The strategy could also extend beyond base-die production. SK Hynix has been evaluating advanced packaging technologies from both TSMC and Intel, including TSMC’s CoWoS-S and CoWoS-L and Intel’s EMIB, according to the report.
The development comes as SK Hynix expands its next-generation HBM roadmap. The company said in June that it had shipped samples of its 12-layer HBM4E to major customers.
The product is designed to deliver speeds of up to 16Gbps per pin and more than 20 per cent higher power efficiency than previous generations.
However, the Herald report described cooperation with Intel as a plan under consideration rather than a finalised agreement. The extent and timing of any Intel production involvement therefore remain unclear.
