"Big Tech Offers SK hynix 'Blank Checks Worth Trillions'... 'We'll Even Buy 500 Billion Won Equipment for You'"

Direct Investment in Production Lines and EUV Equipment Funding
Big Tech Courts SK hynix Amid Memory Shortage
SK hynix Cautious, Citing Concerns Over Dependence on Specific Companies

As the global race to secure artificial intelligence (AI) semiconductors reaches a critical threshold, it has been reported that major global big tech companies are offering SK hynix unprecedented partnership terms. These proposals go far beyond simply purchasing chips, with some companies suggesting they would directly build multi-trillion-won production lines or cover the costs of advanced equipment worth hundreds of billions of won.

According to foreign media and the semiconductor industry on May 8, major global big tech companies have recently proposed direct investments to construct dedicated memory production lines at SK hynix, as well as financial support for the purchase of extreme ultraviolet (EUV) lithography equipment from ASML in the Netherlands. Each EUV machine is an ultra-high-priced piece of equipment, costing between 300 billion and 500 billion won, and is essential for advanced memory manufacturing processes.

Yonhap News Agency

In the past, memory industry buyers typically held the upper hand and forced down prices, but the situation has completely reversed due to the AI-driven shortage of high bandwidth memory (HBM) and DRAM. One source explained, "Currently, SK hynix's available production capacity is effectively zero. Since there is no extra capacity to allocate for specific customers, big tech companies are leveraging their financial resources to step in and provide direct support."

Notably, some of these proposals reportedly include equity investment or facility support for the first-phase process of SK hynix's large-scale fab currently under construction at the Yongin Semiconductor Cluster.

Despite these bold offers, SK hynix appears to be maintaining a cautious stance. The company is concerned that hastily accepting funding from a particular company, even with abundant cash reserves, could lead to being locked in as a "hostage" to that company's purchasing power in the future.

SK hynix has not disclosed the details of its contract terms with customers but stated, "We are comprehensively reviewing a variety of new approaches and structural alternatives that differ from traditional long-term contracts."

An industry insider pointed out, "If you build a production line with a customer's money, you may ultimately have to lower chip prices in the long run or be tied to an exclusive supply contract with that company if market conditions change." The source noted that SK hynix is carefully weighing the balance between maximizing profitability and spreading risk.

Some interpret this situation as a sign that fundamental changes are taking place in the way memory semiconductors are traded. Previously, the memory industry was known as a "cyclical industry" marked by extreme price fluctuations, but now, with the structural growth driven by AI, it is entering a long-term stable trajectory.

In fact, SK hynix and Samsung Electronics have recently been signing "multi-year supply contracts" with customers, strengthening "binding" conditions that make cancellations impossible—unlike in the past. New contract structures being discussed include the "advance payment model," in which 30 to 40 percent of the total amount is paid upfront, and the "price band system," which sets upper and lower price limits to restrict price volatility.

This content was produced with the assistance of AI translation services.