Tech Firms Offer to Fund SK Hynix Chip Lines

Major technology companies are offering to directly invest in SK Hynix's new memory chip production lines and finance purchases of advanced manufacturing equipment, sources familiar with the discussions said, in an effort to lock in supplies amid a severe global shortage driven by artificial intelligence demand.

The proposals, described as unprecedented in the memory chip industry, include funding dedicated production lines at SK Hynix facilities and covering costs for extreme ultraviolet lithography machines from ASML, which cost hundreds of millions of dollars each and are essential for patterning circuits on silicon wafers. One such offer targeted the first phase of SK Hynix's upcoming dynamic random-access memory fabrication plant in its Yongin complex in South Korea. These arrangements mark a departure from the sector's traditional model, where DRAM and NAND chips are produced speculatively for open-market sales rather than tied to specific buyers.

SK Hynix, Asia's third-most valuable company by market capitalization behind TSMC and Samsung, is reviewing the offers cautiously. The firm worries that accepting could create dependency on individual customers, potentially...