Reuters reports SK hynix is in talks with Intel about a potential agreement that could bring the memory chip maker’s manufacturing operations to the United States for the first time through Intel’s massive Ohio fab.
The discussions are said to be still exploratory, and no agreement has been reached. SK hynix said it is examining various options to expand its production footprint but emphasized that no specific plans have been finalized. The company later said that nothing had been finalized regarding cooperation with Intel or U.S. memory production.
One option under consideration would have SK hynix lease part of Intel’s planned semiconductor manufacturing complex in Ohio. Another possibility would involve the companies forming a joint venture with major cloud-computing companies seeking to secure supplies of memory chips, according to the sources.
Intel likewise declined to comment on the reported negotiations, describing them as speculation, but said it remains committed to its Ohio investment and is continuing work to prepare the site.
The Ohio fab is enormous, because it is more than just one fabrication plant. It could potentially expand to as many as eight fabs. Intel announced plans in 2022 to invest as much as $100 billion in an Ohio semiconductor manufacturing complex, but construction and production schedules have subsequently been pushed back. The first fab has been scheduled to begin operation until 2030.
A partnership with SK hynix could potentially give the site a new role while helping Intel share the costs associated with developing the facility. Even with several billion in CHIPS Act funding, the facility is estimated to cost more than $100 billion to build.
For SK hynix, producing memory in the U.S. would represent a significant expansion of its American manufacturing presence. The company is already building an advanced $3.8 billion packaging and research facility in West Lafayette, Indiana, specifically to manufacture High Bandwidth Memory (HBM). It is unclear what type of memory SK hynix would manufacture in Ohio.
Besides a four-year wait, any potential deal could run into another obstacle: opposition from the South Korean government. The advanced packaging technology to make HPM is considered a national security issue and highly sensitive, according to three sources who spoke to Reuters on background.
SK hynix said in a statement to Reuters that it is “reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business,” but “no matters have been determined at this stage.”
Intel declined to comment on what it called speculation, but added that it was continuing with investments in Ohio to ready the site.
