Chipmakers Flood SK Hynix with Supply Offers

South Korean chipmaker SK Hynix has received numerous investment proposals from major global technology firms seeking to secure memory chip supplies, according to sources familiar with the matter on May 8. These offers include investments in new production lines and funding for expensive manufacturing equipment, such as ASML's extreme ultraviolet lithography machines.

The unprecedented offers highlight a severe global scarcity of memory chips, driven by surging demand from the artificial intelligence sector. Memory chips are crucial components for AI data centers, smartphones, and personal computers. Despite being financially robust, SK Hynix is exercising caution regarding these proposals, as accepting them could potentially tie the company to specific buyers and necessitate supplying chips at reduced prices in exchange for long-term revenue guarantees.

SK Hynix, which has seen its shares increase by 154% this year due to AI investment, is currently operating at full capacity. The company is comprehensively reviewing various approaches beyond conventional long-term agreements. Major U.S. tech firms, including Alphabet, Meta, and Micrososources, recently announced plans to significantly boost spending on AI infrastructure, with Micrososources projecting capital expenditures of $190 billion this year, including $25 billion for component costs.