SK hynix Reportedly Refuses Investment Proposal from U.S. Tech Giants, Uses It as LTA Negotiating Leverage

According to the report by ChosunBiz citing industry insiders, SK hynix recently received proposals from Alphabet, Microsoft, and Meta to support investment in a memory semiconductor fab, with commitments of tens of billions of US dollars in funding to build wafer fabs and purchase EUV lithography equipment. However, the management reportedly did not seriously consider the proposals. If a specific large tech company were to finance the fab construction, it would result in a contract structure that includes an exclusive supply obligation. It is said that SK hynix declined these proposals while simultaneously using them as leverage in long-term supply agreement (LTA) negotiations. Industry insiders interpret this as meaning SK hynix will require higher prepayments, ultra-long-term contracts of five years or more, and price floor guarantee clauses. The strategy aims to convert the funding offered by major tech companies into more favorable contract terms rather than into equity in the fab.