SK Hynix and Intel Discuss Potential US Memory Chip Manufacturing Deal

South Korean memory chip maker SK Hynix is reportedly in talks with Intel about producing memory chips in the United States for the first time, Reuters reported, citing people familiar with the discussions.

The companies have explored multiple options, including SK Hynix leasing space at Intel’s planned Ohio factory to manufacture chips. Another possibility is a joint venture that could include major cloud service providers.

SK Hynix said it has not finalised any agreement, adding that it is reviewing options to strengthen its global competitiveness.

AI demand drives memory chip expansion

SK Hynix has benefited from growing demand for high-bandwidth memory (HBM) chips used in AI data centres. The company has seen strong growth as artificial intelligence systems require more advanced memory technologies.

The company is already building a $3.8 billion advanced packaging and research facility in West Lafayette, Indiana. The project, announced by SK Group, is expected to begin mass production in 2029 and will package memory components into HBM chips.

US semiconductor manufacturing push

The potential Intel partnership comes as the US works to expand domestic chip production and reduce supply chain risks. The White House has introduced measures to support semiconductor manufacturing and control access to certain advanced computing technologies.

SK Group Chairman Chey Tae-won has also supported expanding US manufacturing alongside South Korean operations. The company recently increased its presence among American investors through a Nasdaq listing for SK Hynix American depositary receipts.

Possible regulatory review

A deal involving advanced memory technology could face scrutiny in South Korea because of rules designed to protect strategically important semiconductor technologies. Reports have noted that any final decision would remain subject to applicable government review.

SK Hynix and Intel have worked together before. In 2020, Intel sold its NAND flash memory business to SK Hynix in a $9 billion deal.