Key facts
- SK Hynix is in discussions with Intel to manufacture memory chips in the U.S. for the first time.
- One potential deal involves SK Hynix leasing space at Intel's planned factory in Ohio.
- A joint venture with Intel and cloud service providers is also being considered.
- SK Hynix stated that no specific plans have been finalized and no decisions have been made.
- The South Korean government may review any plan involving strategically important chip technology.
- Intel sold its NAND flash-memory business to SK Hynix in 2020.
South Korean memory chip giant SK Hynix is reportedly in discussions with Intel to manufacture memory chips in the U.S. for the first time, according to anonymous sources cited by Reuters. The companies are exploring various structures for the potential deal, including SK Hynix leasing space at Intel's planned factory in Ohio or forming a joint venture that could involve cloud service providers seeking to secure memory chip supplies.
SK Hynix stated that while it is exploring options to strengthen its global competitiveness, no specific plans have been finalized and no decisions have been made. Intel did not immediately respond to requests for comment.
The U.S. administration has been seeking to expand domestic chip production amid a global chip shortage and high demand for AI applications. The White House has indicated potential tariffs on semiconductor imports while offering relief for companies investing in the U.S. SK Group Chairman Chey Tae-won has previously expressed support for building factories in the U.S.
However, any deal involving strategically important chip technology could face scrutiny from the South Korean government, which may review such transfers. Manufacturing semiconductors in the U.S. is also significantly more expensive than in South Korea. SK Hynix is already building a $3.8 billion advanced packaging and research facility for AI chips in Indiana, with mass production expected to begin in 2029.
Intel and SK Hynix have a prior business relationship, with Intel selling its NAND flash-memory business to SK Hynix for $9 billion in 2020.