Fresh reports out of South Korea indicate that SK Hynix (SKHY) is exploring a tie-up with Intel's (INTC) contract manufacturing unit, potentially handing over a portion of its next-generation HBM4E base die production to the American chipmaker. This move is aimed at broadening the memory giant's supplier base, though the proposal remains in the evaluation stage, with no finalized details on the collaboration's scope or timeline just yet.

Shares of Intel jumped 1.4% in premarket trading.

The base die serves as the foundational layer of the multi-stacked DRAM package, acting as the critical link between HBM and processors such as GPUs, while also managing data flow and control signals. As HBM specs continue to climb, the base die's role has become increasingly pivotal. While SK Hynix relied on its own internal process for the HBM3E base die, it shifted gears with HBM4 by tapping TSMC's (TSM) advanced logic manufacturing.

Currently, the base die for SK Hynix's HBM4 line is produced using TSMC's 12nm-class node. Industry watchers, as cited by South Korean media, estimate that the cost of having TSMC fabricate these HBM4 base dies could run three to four times higher than that of the core DRAM dies themselves. With HBM4E gearing up for mass production, SK Hynix is on the hunt for additional foundry partners to cut costs and shore up supply chain resilience.

Reports suggest SK Hynix could opt for a dual-source strategy starting with HBM4E, using both TSMC and Intel for base die production, rather than making a complete switch away from the Taiwanese foundry. Beyond that, the company is also eyeing advanced packaging solutions from both camps—TSMC's CoWoS-S and CoWoS-L versus Intel's EMIB technology.

The pace of SK Hynix's HBM4E development has picked up considerably. Back in June, the firm announced it had shipped 12-layer HBM4E samples to major clients, boasting a peak data transfer rate of 16Gbps and a more than 20% improvement in power efficiency over its predecessor, with plans to ramp up mass production alongside its customers moving forward.

Should a deal materialize, it would mark a major win for Intel's foundry arm in breaking into the next-generation HBM supply chain. It also signals that SK Hynix's production network could steadily evolve from its current heavy reliance on TSMC to a more diversified, multi-vendor setup. That said, neither SK Hynix nor Intel has formally announced a foundry agreement for HBM4E base dies just yet, and the specific production plans are still up in the air.