SK Hynix reportedly in talks with Intel to build memory chips in US

Memory chip production in the US for AI applications could become more accessible and potentially less expensive.

SK Hynix is reportedly in discussions with Intel regarding the possibility of manufacturing memory chips at Intel's planned facility in Ohio. According to anonymous sources cited by Reuters, these discussions include options such as SK Hynix leasing space at Intel's factory or forming a joint venture, which might also involve cloud service providers. SK Hynix has stated that no definitive plans have been made, but the company is exploring ways to enhance its global competitiveness. This potential collaboration comes as the U.S. government aims to boost domestic chip production amid ongoing shortages. SK Hynix is already constructing a $3.8 billion facility in Indiana for advanced packaging and research of AI chips, with production slated to begin in 2029. The company previously acquired Intel's NAND flash memory business for $9 billion in 2020. Any deal involving strategically sensitive technology could be subject to government review in South Korea.

The potential collaboration between SK Hynix and Intel to manufacture memory chips in the U.S. signifies a strategic move towards de-risking supply chains and aligning with U.S. industrial policy. By exploring options like leasing space or a joint venture at Intel's Ohio site, SK Hynix could gain a significant manufacturing foothold in North America, complementing its existing Indiana facility. This development could accelerate the availability of critical AI-related memory components, reducing reliance on Asian manufacturing hubs and potentially leading to more stable pricing and supply for businesses operating within the U.S.

This partnership, if realized, would underscore the growing interdependence between global semiconductor giants and the increasing importance of the U.S. as a manufacturing and innovation center for advanced technologies. The inclusion of potential cloud-service providers in discussions suggests a concerted effort to ensure that future chip production directly addresses the demands of major AI infrastructure players. Stakeholders should monitor how this potential agreement navigates regulatory reviews and integrates into the broader U.S. semiconductor ecosystem, as it could set a precedent for future international manufacturing collaborations.