SK Hynix is in talks with Intel about manufacturing memory chips in the United States, a step that would give the South Korean company its first wafer fabrication presence in the country, Reuters reported. The discussions could give Intel an important customer for its foundry business while helping SK Hynix place production nearer to major markets as tariffs and expected supply constraints reshape the industry.
One option under discussion would allow SK Hynix to take over part of Intel's facility in Ohio. Another would involve the companies forming a joint venture with major cloud firms seeking secure supplies of memory chips. Reuters was unable to establish which cloud companies might take part, how such a venture might be arranged, or the financial terms of any deal.
A source described the negotiations as exploratory and said that no decisions had been made. Reuters was also unable to learn which chips SK Hynix could make in Ohio if the companies reach an agreement.
SK Hynix said it was "reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business," and added that "no matters have been determined at this stage." Intel called the report speculation and declined to comment. It said it remained committed to its Ohio investments as it prepares the site.
The talks come as SK Hynix considers how much manufacturing capacity it may need in the United States. Its chairman, Chey Tae-won, said in July that a US factory had become necessary because customers and countries were pressing for greater chip supply. Kwak Noh-jung, the company's chief executive, warned earlier this year that 2027 would bring the most severe memory supply crunch the industry had ever seen.
Washington has also signalled a policy preference for production inside the country. US Commerce Secretary Howard Lutnick said on the 2nd that the administration was considering tariffs on semiconductor products. Under the policy he outlined, chips made in the United States would face no duties, while chips produced abroad would incur tariff costs.
For Intel, a deal could provide an anchor customer for a foundry operation that manufactures chips for outside clients. Intel's Ohio plans go back to 2022, when it pledged as much as $100 billion for a chipmaking campus. The two plants planned there are now expected to be completed in 2030 and 2031.
SK Hynix already has a US project in Indiana, though it does not yet have wafer fabrication capacity in the country. Last month, the company broke ground on a $4 billion facility intended to make Indiana a key high-bandwidth memory, or HBM, production base by 2030. Mass production is targeted for the second half of 2029.
That Indiana site is a back-end operation. It will package DRAM made in South Korea and elsewhere into high-performance HBM products. An Ohio arrangement would therefore mark a different stage of manufacturing for SK Hynix, whose proposed role there remains unclear.
There are substantial obstacles to any agreement. Chip manufacturing in the United States costs considerably more than production in South Korea, owing to higher wages and construction expenses. US plants also operate at a distance from Asia's dense semiconductor supply chain, adding to their costs.
Any transfer or use of advanced memory technology could also face scrutiny in South Korea. The country's Industrial Technology Protection Act may require regulatory review for an agreement involving technologies including HBM or DRAM. South Korea's trade ministry said a decision by SK Hynix to make chips in the United States would be for the company to take. It said an arrangement involving a 'national core technology' would be reviewed under the act.
Investors welcomed the prospect of a partnership. Intel shares rose 5.2% in premarket trading on Wednesday, while SK Hynix shares closed 4.1% higher in Seoul. The companies have yet to say whether they will reach an agreement, when any Ohio production could begin, or whether a potential partnership would affect Intel's existing timetable for the site.
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