SK Hynix considers Intel for next-gen memory chips, report says

SK Hynix ↗ 3.36% is considering outsourcing production of base dies for its next-generation HBM4E memory chips to Intel ↗ 4.80% Foundry, a move that would diversify a supply chain currently dependent on TSMC Taiwan Semiconductor Manufacturing Company Limited ↗ 1.90%, according to a report by South Korea's Herald Economy published Monday.mbiz.heraldcorp

The plan, described by industry sources as under consideration rather than a finalized agreement, would mark Intel Foundry's entry into the HBM supply chain and give the struggling contract chipmaking unit a high-profile new customer.investing+1

Cost Pressures Drive Dual-Sourcing Push

The base die sits at the bottom of an HBM memory stack, handling logic, control, and high-speed connectivity between the memory layers and processors such as GPUs. SK Hynix produced base dies in-house through HBM3E but turned to TSMC's 12nm-class process starting with HBM4.tradingview

That shift came at a price. Industry estimates cited by Herald Economy put the cost of TSMC-manufactured HBM4 base dies at three to four times that of an SK Hynix-produced core DRAM die. With NVIDIA ↗ 2.20% having committed $279 billion in multi-year memory purchases and HBM4E entering mass production preparation, even modest cost reductions on base dies would carry weight across large volumes.investing+1

SK Hynix shipped 12-layer HBM4E samples to key customers in June, with data transfer speeds reaching 16 Gbps and power efficiency improvements exceeding 20% over the prior generation.tradingkey

What It Means for Intel and TSMC

For Intel, landing an HBM base die contract would bolster its foundry turnaround effort after years of manufacturing setbacks. Intel Foundry has ramped its 18A process into high-volume production and is developing 14A for external customers, but the division reported a $2.1 billion operating loss in the second quarter of 2026.tradingview

According to Investing.com, SK Hynix may adopt both TSMC and Intel simultaneously for HBM4E base dies rather than shifting entirely away from TSMC. The companies are also reportedly evaluating advanced packaging technologies from both suppliers, including TSMC's CoWoS and Intel's EMIB.tradingkey

For TSMC, the direct revenue impact would be small relative to its $1.95 trillion market cap, but the precedent matters. If Intel proves capable of delivering HBM base dies at acceptable yield and cost, Samsung and Micron ↗ 3.31% could evaluate the same path, eroding TSMC's pricing power in the segment.investing

Broader Intel-SK Hynix Ties

The potential partnership comes amid broader speculation about the two companies' relationship. In July, reports indicated SK Hynix was among potential partners Intel was considering to help operate its delayed Ohio fabrication facility, though SK Hynix denied pursuing an acquisition. The companies already have a transaction history — Intel sold its NAND and SSD business to SK Hynix for $9 billion in a deal completed in recent years.tradingview

Neither SK Hynix nor Intel has officially confirmed a foundry agreement for HBM4E base dies.tradingkey