SK Hynix & Intel Discuss US Memory Chip Deal As Seoul Scrutiny Looms

SK Hynix could manufacture memory chips in the United States for the first time through a potential deal with Intel, but the same move that could please Washington may face scrutiny from the South Korean government.

The companies are reportedly discussing multiple options, including SK Hynix leasing space at Intel’s long-delayed Ohio chip facility or forming a broader venture involving Intel and major cloud companies.

However, the talks remain exploratory and no agreement has been finalized.
 

TL;DR

 

• SK Hynix and Intel are reportedly discussing ways to manufacture memory chips in the US.
• One option could see SK Hynix lease part of Intel’s Ohio semiconductor facility.
• Another could involve a joint venture with Intel and major cloud companies.
• South Korean regulators could review any transfer involving strategically important memory-chip technology.

 

SK Hynix And Intel Explore First US Memory Chip Production Deal

As per reports, SK Hynix is exploring a deal with Intel that would bring its memory-chip manufacturing onto US soil for the first time.

One proposal involves leasing part of Intel’s planned Ohio manufacturing facility. Another could create a venture combining SK Hynix, Intel and major cloud-service companies seeking more secure access to memory-chip supplies amid growing demand from AI and data-center infrastructure.

The companies have not reached a decision. SK Hynix said it is considering measures to strengthen its memory business but that “no matters have been determined at this stage.” Intel declined to comment on speculation while saying its Ohio investments are continuing.

Investors nevertheless reacted quickly, with Intel shares rising 5.5% at Wednesday’s open while SK Hynix finished 4.1% higher in Seoul.
 

Intel’s Ohio Chip Plants Could Give SK Hynix A US Manufacturing Base

It remains unclear which memory products SK Hynix could manufacture in Ohio if a deal materializes.

The company produces DRAM used across servers, PCs and smartphones, NAND flash memory for long-term storage and high-bandwidth memory, or HBM, used extensively in AI processing. SK Hynix is currently a leading HBM supplier.

Intel originally announced plans in 2022 to invest up to $100 billion in its Ohio semiconductor complex, but completion of its first two plants has since been pushed to 2030 and 2031. A partnership with SK Hynix could therefore provide Intel with another route to utilize the site while easing some of its financial pressure.

SK Hynix already has a US expansion underway through a $3.8 billion advanced packaging and research facility in West Lafayette, Indiana.

The facility is expected to begin mass production in 2029 and will package DRAM wafers produced in South Korea into HBM chips rather than fabricate the wafers locally.
 

 

South Korea Could Review SK Hynix’s US Memory Chip Plans

Moving advanced memory production overseas could introduce another complication.

South Korea’s trade ministry said investment decisions remain SK Hynix’s responsibility, but any plan involving a designated “national core technology” would be subject to review under the country’s Industrial Technology Protection Act. Advanced technologies such as HBM or DRAM could therefore draw additional scrutiny.

There are financial challenges too. Manufacturing semiconductors in the US carries higher labor and construction costs, while much of the industry’s supply chain remains concentrated in Asia.

Still, pressure to expand US chip production is increasing as AI infrastructure pushes demand for memory higher. For SK Hynix and Intel, that leaves a potentially strategic deal on the table, although for now, it remains exactly that: a possibility rather than a finalized plan.