South Korean memory chipmaker SK Hynix is in preliminary talks with Intel Corp. that could result in the company manufacturing semiconductors in the United States for the first time.
According to Reuters, citing sources familiar with the discussions, the companies are exploring multiple structures for potential partnership. One scenario involves SK Hynix leasing space at Intel’s long-planned manufacturing site in Ohio. Another option under consideration is a joint venture between Intel, SK Hynix, and major cloud computing firms seeking to secure their chip supply chains. Sources emphasized that discussions are exploratory and no formal decisions have been finalized.
In official statements, SK Hynix clarified that while it is “reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business,” nothing has been finalized regarding cooperation with specific companies or U.S. memory chip fabrication. Intel declined to comment on what it characterized as speculation, reiterating its continued commitment to its investments in Ohio.
The reported Intel talks are a “financing answer to a capacity problem,” explains Mitch Ashley, vice president and practice lead for Software Lifecycle Engineering and AI-Native Software Engineering at The Futurum Group.
“Intel has a delayed Ohio site needing a tenant, and SK hynix has AI memory demand it cannot serve from Korea. The joint venture version turns memory from a purchase into a supply commitment,” Ashley said. “Watch the equipment order. Memory fab tool lead times run into years, and South Korean regulators must clear any advanced memory technology moving offshore. Until that capital commits, this is an option on capacity.”
A partnership could offer mutual benefits for both companies amid shifting geopolitical and industry demands. For Intel, leasing space or entering a joint venture would ease financial pressure surrounding its $100 billion Ohio facility. Initially announced in 2022 with a targeted 2025 launch, the completion of the Ohio site’s two plants has been delayed to 2030 and 2031.
“From an AI infrastructure perspective, it shows how important memory supply has become. Producing memory in the United States could give cloud providers and AI companies another source of supply closer to their data centers,” said Stephanie Walter, practice leader for AI Stack & Enterprise Application Development at HyperFRAME Research. “But these are still preliminary talks, and we do not yet know what SK Hynix would produce, how much capacity it would add, or whether it would make a meaningful difference to availability.”
For SK Hynix — a key supplier of High-Bandwidth Memory (HBM), DRAM, and NAND flash chips used in AI processing — establishing a manufacturing presence in the U.S. responds to growing customer and regulatory demands.
SK Group Chairman Chey Tae-won previously noted in July that the company faces significant lobbying to expand its manufacturing footprint domestically within the U.S.
The talks also align with pressure from Washington, D.C. U.S. Commerce Secretary Howard Lutnick has pushed foreign chipmakers to expand production on American soil, threatening tariffs of up to 100% on foreign semiconductor imports if companies do not commit to U.S. manufacturing bases.
Despite the strategic incentives, a potential deal faces hurdles from regulatory authorities and higher operating costs. Manufacturing chips in the U.S. incurs significantly higher construction and labor expenses compared to South Korea, alongside distance from Asia’s central semiconductor supply chain.
Furthermore, the South Korean government could present regulatory resistance. Advanced memory products, particularly HBM, are categorized as sensitive technologies. South Korea’s trade ministry noted that while plant construction decisions rest with the company, any transfer or production involving “national core technology” would require a formal government review under the Industrial Technology Protection Act. Seoul is also encouraging SK Hynix and Samsung Electronics to prioritize domestic expansion in South Korea’s southwest region.
Following initial reports, market reactions were positive. Intel shares rose over 3% in early trading, while SK Hynix stock also saw gains.
