SK Hynix is in discussions with Intel regarding a possible agreement to produce memory chips in the US for the first time, reported Reuters, citing three individuals familiar with the matter.
The talks encompass multiple scenarios, two sources said. These include SK Hynix leasing part of Intel’s planned chipmaking facility in Ohio or possibly forming a partnership with Intel and major cloud computing firms seeking secure memory chip supplies.
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Any move to establish production in the US would be a significant development for both companies.
According to the publication, Intel is currently facing operational pressures, while increased US government efforts have aimed to boost semiconductor manufacturing domestically amid heightened demand for memory chips used in AI and data centres.
Potential resistance from the South Korean government remains a challenge, with sources indicating concerns over the possible production of advanced memory technologies in the US. Technologies such as high-bandwidth memory (HBM) and dynamic random-access memory (DRAM) are classed as sensitive by Seoul.
A source described the discussions as initial and exploratory, noting that no definite decision has been reached and that SK Hynix is considering different ways to proceed.
Neither company has disclosed which types of chips might be produced if an agreement is concluded.
SK Hynix’s product line includes DRAM, NAND flash memory, and HBM chips, the latter of which are used in AI processors.
The company is currently building a packaging facility in Indiana, following a secondary Nasdaq listing completed in July.
Despite higher costs for semiconductor production in the US compared to Asia, SK Hynix has expressed a willingness to consider new manufacturing bases.
SK Hynix, in a statement, said: “We would like to clarify that nothing has been finalised regarding cooperation with any specific companies mentioned in the article or memory chip production in the US.”
Intel, for its part, declined to comment on what it called speculation, but confirmed ongoing investment in its Ohio facility.
A spokesperson for South Korea’s trade ministry stated that any plans to produce memory chips in the US would fall under the company’s discretion, although further review would be required if “national core technology” were involved.
Completion of Intel’s Ohio manufacturing site, which was announced as a potential $100bn investment in 2022, has been delayed to 2030 and 2031.
