SK Hynix is in exploratory talks with Intel over a possible agreement that could see the South Korean company manufacture memory chips in the United States for the first time, according to Reuters, citing three people familiar with the discussions.
One option under discussion would involve SK Hynix leasing part of Intel’s long-planned semiconductor facility in Ohio. Another possibility is a joint venture involving SK Hynix, Intel and major cloud companies looking to secure memory chip supplies.
No agreement has been finalized, and Reuters could not determine what type of memory SK Hynix would produce in Ohio if a deal moves ahead. The company makes DRAM, NAND flash, and high-bandwidth memory used in AI systems.
Deal Could Help Intel’s Delayed Ohio Project
A partnership could also ease some of the financial pressure on Intel.
Intel announced plans in 2022 to invest up to $100 billion in a major chipmaking complex in Ohio. Production was originally expected to begin in 2025, but completion of the two plants has since been pushed back to 2030 and 2031.
Intel shares rose 5.5% at the open after the report, while SK Hynix shares finished 4.1% higher in Seoul.
South Korean Approval Could Become an Issue
A potential obstacle is whether the South Korean government would allow advanced memory technology to be manufactured in the US.
The sources said a deal involving technologies such as HBM or DRAM could face opposition because South Korea considers them sensitive.
South Korea’s trade ministry said the decision would ultimately be SK Hynix’s, but any agreement involving a “national core technology” would require a review under the country’s Industrial Technology Protection Act.
SK Hynix said it is reviewing different options, including additional production bases, to improve the competitiveness of its memory business, but stressed that no decision has been made.
Intel declined to comment on the reported talks and said it continues to invest in preparing its Ohio site.
Pressure to Expand US Chip Production
Manufacturing semiconductors in the US is considerably more expensive than in South Korea because of higher labor and construction costs and the concentration of much of the semiconductor supply chain in Asia.
Even so, SK Hynix is facing increasing pressure from customers and governments to expand production as the AI boom drives demand for memory chips.
SK Group Chairman Chey Tae-won said in July that the company was under strong pressure to supply more chips and believed it should build a factory in the United States if possible.
At the same time, the South Korean government has been encouraging SK Hynix and Samsung to accelerate domestic semiconductor investment.
SK Hynix last month approved about $38.3 billion in investments through 2031 for new DRAM and NAND production facilities in South Korea.
US Commerce Secretary Howard Lutnick has also threatened tariffs of up to 100% on South Korean and Taiwanese companies unless they commit to increasing semiconductor production in the United States.
For now, discussions between SK Hynix and Intel remain exploratory, with no final structure, production plan, or agreement confirmed.
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