SK Hynix Weighs Intel as HBM Base Chip Foundry to Cut TSMC Reliance
SK Hynix is evaluating adding Intel as a foundry for base chips used in high-bandwidth memory (HBM), starting with HBM4E, to reduce costs and diversify supply chains. The base chip, which handles high-speed data interfaces, costs three to four times more when made by TSMC using 12-nanometer process than SK Hynix's own core chips. The move aims to improve bargaining power and flexibility.
SK Hynix is assessing the inclusion of Intel in its foundry system for base chips used in high-bandwidth memory (HBM), with plans to shift some production from TSMC to Intel starting as early as the seventh-generation HBM4E. The initiative is intended to lower costs and diversify the supply chain.
The base chip sits at the bottom of the HBM stack and manages the high-speed data interface between external processors such as GPUs and CPUs and the HBM itself. Its technical specifications and cost directly affect the competitiveness of the overall product. HBM4 has already entered mass production, and SK Hynix is currently evaluating a multi-supplier structure.
In the mass-produced HBM4, base chips made by TSMC using a 12-nanometer process cost three to four times more than SK Hynix's core chips, which are produced with its 1b (fifth-generation 10-nanometer-class) process. Because long-term supply contracts account for a significant share of HBM sales, higher foundry costs are difficult to pass on immediately to end-product prices. Starting with the HBM4 generation, base chips can be customized to meet the architecture and performance requirements of different customers' AI accelerators, increasing demand for tailored designs. SK Hynix plans to introduce a second supplier to allow flexible allocation across different foundry processes.
At the Hot Chips conference in Silicon Valley, SK Hynix's vice president of packaging engineering for the Americas said the company is comparing and testing advanced packaging solutions, including TSMC's CoWoS-S and CoWoS-L and Intel's EMIB. In response, SK Hynix said it is difficult to confirm details about its technology roadmap and that some information is inaccurate, without directly confirming the reports.