SK Hynix in Talks with Intel to Manufacture Memory Chips in the US
SK Hynix is in discussions with Intel regarding a potential deal to manufacture memory chips in the United States, according to an exclusive Reuters report. The South Korean memory maker is exploring two options: leasing a portion of Intel's delayed Ohio campus or forming a joint venture with Intel and major cloud providers.
One source revealed that no decisions have been made, and SK Hynix confirmed that they are examining "a number of measures, including the establishment of further production bases," but added that no agreement is in place. Intel declined to comment on the speculation while confirming their ongoing preparations for their Ohio site.
Previously, Korea JoongAng Daily reported in July that SK Hynix was negotiating to buy Intel's entire campus with plans to begin front-end memory production within five years. However, Reuters states that the current arrangement is unclear and has not been confirmed by either company.
The move comes as US Commerce Secretary Howard Lutnick has pressured South Korean and Taiwanese chipmakers to establish operations in America, threatening tariffs of up to 100% if they refuse. SK Hynix holds a leading position in the high-bandwidth memory market, driven by demand from data centers.
While producing memory chips in the US would be more expensive due to labor, construction, and supplier costs, the company is constructing a $4 billion packaging plant in Indiana. The final decision rests with SK Hynix, which must consider the potential impact on its 'national core technology' under South Korea's Industrial Technology Protection Act.
The news sparked a positive response from investors; Intel shares rose by approximately 5%, and US-listed SK Hynix shares increased by around 3% in overnight trading following the report.