SK Hynix, Intel Explore U.S. Memory-Chip Production Deal

SK Hynix Inc. is in advanced discussions with Intel Corp. to establish U.S. memory-chip production, a move aimed at securing critical supply chains amid rising demand from artificial intelligence and data centers. The talks, first reported by Reuters, involve potential arrangements such as leasing part of Intel’s planned semiconductor manufacturing facility in Ohio or forming a joint venture with major cloud providers to expand memory supply capacity. Neither company has finalized any agreements, though SK Hynix has signaled a strategic push to strengthen its global footprint, particularly in the U.S., where production costs are higher than in South Korea. The discussions follow Washington’s push for domestic semiconductor manufacturing, exacerbated by shortages linked to AI-driven demand for DRAM and NAND flash memory, which SK Hynix manufactures alongside Intel and competitors like Samsung Electronics. Intel’s planned Ohio facility, originally slated for production in 2027–28, has faced delays, pushing its start to 2030 and 2031 due to construction challenges. SK Hynix has previously signaled interest in U.S. production, with Chairman Chey Tae-won noting in July that securing a domestic facility would be a priority. The move could also face regulatory scrutiny in South Korea, where advanced memory technologies are classified as sensitive under the Industrial Technology Protection Act. While SK Hynix’s Nasdaq-listed shares rose 3.3% and its broader KOSPI index gained 1.4%, the company has not confirmed any specific terms or commitments. Intel’s stock, meanwhile, climbed 3.2% in premarket trading after a 5% initial surge, reflecting market interest in potential collaboration. SK Hynix’s recent expansion in the U.S.—including a completed secondary Nasdaq listing and a chip-packaging facility in Indiana—further underscores its strategic push toward global diversification.