SK Hynix is in discussions with Intel about a potential deal to manufacture memory chips in the United States for the first time. The agreement could involve leasing part of Intel's Ohio facility or forming a joint venture with Intel and major cloud providers. Such a move would address memory chip shortages driven by AI and data center demand.
A deal between SK Hynix and Intel could significantly impact the global semiconductor supply chain, particularly for AI-driven memory chips, while also addressing U.S. efforts to bolster domestic chip manufacturing capacity.
South Korea's SK Hynix is reportedly in discussions with Intel regarding a potential agreement that would enable the memory chip manufacturer to produce its products on U.S. soil for the first time. The talks, described as exploratory by sources, are considering multiple structures for the deal. One possibility is that SK Hynix would lease a portion of Intel's planned chipmaking facility in Ohio. Another scenario involves the formation of a joint venture between SK Hynix, Intel, and major cloud computing companies that are looking to secure stable supplies of memory chips.
Such a collaboration could benefit Intel, which has faced challenges, and align with the U.S. administration's efforts to encourage domestic chip production amid high demand for AI and data centers. However, potential opposition from the South Korean government could pose a significant obstacle, particularly if the agreement involves sensitive technologies like high-bandwidth memory (HBM) or DRAM.
SK Hynix stated it is "reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business," but emphasized that "no matters have been determined at this stage." Intel declined to comment on the speculation but confirmed its ongoing investments in the Ohio site. South Korea's trade ministry indicated that any decision involving "national core technology" would be subject to review.
Despite higher manufacturing costs in the U.S. compared to South Korea, SK Hynix has reasons to consider U.S. production. Chey Tae-won, chairman of the SK Group, has previously expressed the company's need to build a factory in the United States due to pressure from customers and countries seeking chip supply. Intel, meanwhile, has committed to investing up to $100 billion in its Ohio complex, though the completion of its plants has been delayed.