[News] Big Tech Reportedly Moves In on SK hynix With Production, EUV Funding Offers to Secure Memory Supply

As demand continues to surge, even three- to five-year supply agreements may no longer be sufficient, prompting big tech firms to explore new ways to gain preferential access to leading memory suppliers. According to Reuters, SK hynix has drawn an extraordinary wave of interest from global tech heavyweights, with prospective customers offering to finance new production lines and even share the cost of expensive fabrication equipment in a bid to lock in future memory supply.

Some proposals go further still, including funding advanced manufacturing tools such as extreme ultraviolet (EUV) lithography systems from ASML, the report adds. The Dutch chipmaking tool giant’s High-NA EUV systems are particularly expensive, with each tool priced at around $400 million—roughly double that of current-generation EUV equipment, according to previous Reuters reporting.

In one such case, a source cited by Reuters said a recent client proposal was linked to the first phase of a large fabrication plant SK hynix is building at its Yongin complex in South Korea, where DRAM production is expected to be the primary focus.

Notably, both Samsung Electronics and SK hynix are stepping up investment in EUV as they push toward more advanced nodes, including 1c DRAM. As previously reported by The Bell, SK hynix has committed to expanding its EUV equipment deployment in a deal valued at about 12 trillion won, amid intensifying competition in HBM and next-generation DRAM.

According to The Bell, while EUV lithography was initially limited to foundry applications, it has increasingly been adopted in memory production starting from 1a (4th-generation) DRAM. Industry estimates cited in the report indicate that the latest tools involved are ASML’s High-NA EUV systems.

Capacity Constraint Looms

However, according to Reuters, SK hynix is taking a cautious stance on customer financing proposals, as such arrangements could effectively lock the chipmaker into specific buyers and potentially require it to offer chips at lower prices in exchange for longer-term, more stable revenue commitments.

A source cited in the report noted that regardless of the type of offer, available capacity is effectively zero at present, adding that there is not even a marginal portion that can be allocated to any specific customer.

Separately, even before these investment-related proposals emerged, major cloud and tech firms including Microsoft, Google and Amazon had already begun sequentially proposing five-year DRAM supply contracts to Samsung Electronics and SK hynix, according to Global Economic News.

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(Photo credit: SK hynix)