SK Hynix, the world's dominant supplier of high-bandwidth memory chips used in AI data centers, is reportedly in discussions to have Intel Foundry manufacture the base die for its next-generation HBM4E memory stacks. Such a move would represent a significant shift in the semiconductor supply chain, positioning Intel as a direct alternative to TSMC for one of the most critical components in AI hardware.

According to a report from Korean media outlet The Herald Business, SK Hynix is no longer comfortable relying on a single supplier for the logic dies that form the foundation of its HBM stacks.

Why the base die matters

High-bandwidth memory operates by vertically stacking multiple DRAM dies on top of a base die, which serves as the controller and interface between the memory and the processor. For HBM4, SK Hynix began outsourcing base die production to TSMC in 2026. These base dies are costly, reportedly running 3-4 times more expensive than SK Hynix's core DRAM dies, meaning any cost reduction in this component flows directly to the bottom line.

That is where Intel enters the picture. Intel's EMIB (Embedded Multi-die Interconnect Bridge) technology is being evaluated as an alternative to TSMC's CoWoS advanced packaging. Early assessments suggest EMIB could cut packaging costs by roughly 50% in certain use cases compared to CoWoS, which helps explain why advanced packaging capacity and access have become a central issue for AI chip supply chains.

A lifeline for Intel's foundry ambitions

Testing of EMIB integration with SK Hynix's HBM designs has reportedly been underway since earlier in 2026. The progression from technical evaluation to supply chain planning suggests the results have been encouraging enough to advance the partnership discussions.

For Intel, a potential role in HBM4E base die production would add another possible customer relationship at a time when the company is trying to expand its foundry business beyond its own chip roadmap. For SK Hynix, widening the supplier base could reduce dependence on a single foundry for a component that sits at the center of AI memory performance and packaging complexity.

The bigger picture: a $4B bet on US manufacturing

The potential Intel partnership aligns with a broader pattern of SK Hynix investing heavily in supply chain resilience. The company has begun construction of an advanced packaging facility in West Lafayette, Indiana, backed by an investment exceeding $4 billion. That facility is targeting volume production of next-generation HBM by the second half of 2029.

Competitive pressure is also a factor. Samsung, SK Hynix's primary rival in the memory market, has been developing its own 4 nm foundry processes specifically for HBM4 base dies. Against that backdrop, the move toward multiple manufacturing options reflects an industry where packaging, base-die sourcing, and foundry partnerships are increasingly intertwined with the pace of AI hardware deployment.