SK Hynix weighs U.S. memory chip production with Intel

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SK Hynix, Intel discuss US chip production

Highlights

SK Hynix and Intel are discussing potential U.S. memory chip manufacturing arrangements, including leasing at Intel’s Ohio facility or forming a joint venture with possible cloud-service provider involvement.
SK Hynix has not finalized any plans and is separately building a $3.8 billion AI chip packaging and research facility in Indiana, with mass production expected in 2029 using DRAM wafers made in South Korea.
Any Ohio deal with Intel could face South Korean government review over sensitive technology transfer, despite U.S. policy incentives and supply chain considerations.

Ohio manufacturing options under discussion

As reported by TechCrunch, citing Reuters, the South Korean chipmaker and Intel are discussing several structures for a potential U.S. memory manufacturing arrangement. One option under consideration would have SK Hynix lease space at Intel’s planned factory in Ohio, while another could involve a joint venture that may also include cloud-service providers.

SK Hynix says the discussions have not resulted in a firm decision. In a statement to TechCrunch on Wednesday, the company says it is exploring various options to strengthen its global competitiveness, but that no specific plans or arrangements have been finalized, and no decisions have been made on the scenarios mentioned.

It remains unclear what type of memory chips SK Hynix would produce in Ohio if an agreement is reached. The company is already building a $3.8 billion advanced packaging and research facility for AI chips in West Lafayette, Indiana, where mass production is expected to begin in 2029 using DRAM wafers made in South Korea and packaged into HBM chips.

U.S. policy tailwinds and Korean review risk

The potential Ohio project emerges as semiconductor supply constraints persist and Washington seeks to expand domestic chip output. The White House says in January that it could impose broader tariffs on semiconductor imports while offering tariff relief to companies that invest in manufacturing in the U.S.

SK Hynix has also signaled growing interest in the American market. In July, SK Group Chairman Chey Tae-won says the company should build factories in the U.S., if feasible, alongside facilities in South Korea’s Honam region, and that same month the chipmaker lists its American depository receipts on Nasdaq to widen access to U.S. investors.

Any deal with Intel could still face scrutiny in South Korea. Seoul says the decision is up to SK Hynix, but a plan involving strategically important chip technology could trigger a government review under rules meant to prevent sensitive technology transfers overseas. Intel and SK Hynix have worked together before, with Intel selling its NAND flash memory business to SK Hynix for $9 billion in 2020.

Intel and SK Hynix talks about manufacturing memory chips at Intel’s Ohio facility were previously covered in our publication, with the idea ranging from a leasing setup to a broader partnership still at an exploratory stage. We noted that such a move could support U.S. efforts to expand domestic semiconductor capacity while helping Intel’s foundry ambitions and leveraging SK Hynix’s strength in AI-related memory, even as it may face review in South Korea over sensitive technology.

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