SK Hynix in talks with Intel over possible US memory chip production
 |
An SK Hynix DDR5 Tall MRDIMM on display at Computex 2025. File photo. SEOUL/WASHINGTON — September 16, 2026 South Korean memory chipmaker SK Hynix is in discussions with Intel over a possible agreement to manufacture memory chips in the United States for the first time, according to people familiar with the talks. One option under consideration is for SK Hynix to lease part of Intel’s planned chipmaking complex in Ohio. Another possibility is a joint venture involving SK Hynix, Intel and major cloud companies that want to secure reliable supplies of memory chips. The discussions are still at an early stage, and no agreement has been reached. The talks come as demand for memory chips rises sharply because of spending on artificial intelligence and data centers. A deal could also help Intel make greater use of its Ohio project, while supporting US efforts to expand domestic semiconductor production. SK Hynix produces DRAM memory used in servers, computers and smartphones, as well as NAND flash memory used for data storage. It is also a major supplier of high-bandwidth memory, or HBM, which is widely used in AI processors. It remains unclear which types of memory SK Hynix could produce in Ohio. People familiar with the discussions said manufacturing advanced memory such as HBM, or even some DRAM technologies, could face scrutiny from the South Korean government because some semiconductor technologies are classified as sensitive. SK Hynix said it was reviewing different options, including additional production bases, to strengthen its memory business but that nothing had been decided. Intel declined to comment on the reported discussions, describing them as speculation, while saying it was continuing work to prepare its Ohio site. South Korea's trade ministry said decisions about overseas production were ultimately up to individual companies. However, it said projects involving technologies designated as national core technologies would be subject to review under the country's Industrial Technology Protection Act. Producing semiconductors in the United States is generally more expensive than manufacturing them in South Korea because of higher labor and construction costs. The concentration of much of the semiconductor supply chain in Asia can also add to the cost of US production. SK Hynix nevertheless faces pressure from customers and governments to increase production outside its existing manufacturing base. Its chairman, Chey Tae-won, said in July that the company needed to consider building a factory in the United States. The company already has a chip packaging facility under construction in Indiana. It also completed a secondary Nasdaq listing in July, expanding its presence in US capital markets. For Intel, cooperation with SK Hynix could provide a potential use for part of its large Ohio project. Intel announced in 2022 that it planned to invest as much as $100 billion in a major semiconductor complex there, but the planned completion of its two plants has since been pushed back to 2030 and 2031. The possible agreement also comes amid pressure from Washington for foreign chipmakers to expand production in the United States. US Commerce Secretary Howard Lutnick has threatened tariffs of up to 100% on South Korean and Taiwanese companies unless they increase American production, according to the report. At the same time, Seoul has encouraged SK Hynix and Samsung Electronics to accelerate investment in a semiconductor manufacturing cluster in southwestern South Korea. This creates competing demands for SK Hynix as it considers how much production capacity to place in the United States. The United States and South Korea are also working through the details of a proposed $350 billion South Korean investment commitment linked to lower US tariffs. About $150 billion has been earmarked for shipbuilding, while the allocation of the remaining $200 billion has not been settled. Against that backdrop, the potential SK Hynix-Intel arrangement remains subject to commercial decisions and government review. The companies have not announced a final agreement, and the structure, location and type of memory production remain undecided. |
