South Korean memory chip maker SK Hynix is reportedly in talks with Intel about manufacturing RAM chips in the United States for the first time, according to a Reuters report. The discussions could mark a significant expansion of SK Hynix’s U.S. footprint as Washington pushes for more semiconductor production on American soil.
The companies are said to be evaluating several options, including a proposal under which SK Hynix would lease space at Intel’s planned Ohio semiconductor facility. Another possibility involves forming a joint venture that could also include cloud computing providers.
SK Hynix Says No Decision Has Been Made
SK Hynix has downplayed reports that a deal is imminent, stating that discussions remain exploratory.
In a statement published on the company’s official newsroom, SK Hynix said it is reviewing various strategies to strengthen its global competitiveness but emphasized that no specific plans have been finalized. The company also said no decision has been made regarding the scenarios described in the Reuters report.
Growing U.S. Investment Amid AI Boom
The potential manufacturing partnership comes as SK Hynix continues to benefit from surging demand for high-bandwidth memory (HBM) chips used in artificial intelligence data centers.
The company is already investing $3.8 billion in an advanced AI chip packaging and research facility in Indiana. According to an announcement on the SK Group website, mass production at the facility is expected to begin in 2029, using DRAM wafers produced in South Korea and packaging them into HBM chips in the United States.
It remains unclear what type of memory products would be manufactured in Ohio if an agreement with Intel moves forward.
U.S. Push For Domestic Semiconductor Production
The discussions align with broader efforts by the U.S. government to expand domestic semiconductor manufacturing as concerns grow over supply chain resilience and global chip shortages.
In January, the White House indicated it could impose wider tariffs on semiconductor imports while offering incentives for companies that invest in U.S.-based production facilities. These measures are aimed at strengthening America’s semiconductor ecosystem and reducing reliance on overseas manufacturing.
SK Group Chairman Chey Tae-won also expressed support in July for expanding chip production in the United States when economically viable, alongside continued investments in South Korea.
Potential Regulatory Scrutiny In South Korea
Any agreement could face regulatory review in South Korea due to the strategic importance of semiconductor technology.
According to Reuters, while the decision ultimately rests with SK Hynix, plans involving critical chip technologies may be subject to government assessment under laws designed to prevent sensitive technologies from being transferred abroad.
Longstanding Relationship Between Intel And SK Hynix
The two companies already share a significant business history. In 2020, Intel sold its NAND flash memory business to SK Hynix in a deal valued at $9 billion, strengthening the Korean company’s position in the global memory market.
A new manufacturing partnership would represent a deeper collaboration between the firms and could further reshape the semiconductor industry’s growing investment wave in the United States.
Featured image credits: Wikimedia Commons
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