SK Hynix is in active discussions with Intel to establish U.S.-based memory chip manufacturing, potentially leveraging Intel’s Ohio facility or forming a joint venture with other hyperscalers.
SK Hynix is currently in discussions with Intel to produce memory chips in the United States for the first time. The negotiations center on identifying viable methods for SK Hynix to utilize Intel’s U.S. manufacturing infrastructure, particularly its Ohio facility, rather than constructing an entirely new plant. According to Reuters, citing individuals familiar with the matter, one primary option involves SK Hynix leasing a portion of Intel’s Ohio chipmaking site.
Beyond a straightforward lease, the companies are exploring additional structural arrangements. Another potential pathway involves establishing a joint venture that would include Intel, SK Hynix, and several major cloud computing providers. Both the lease model and the joint-venture framework are under active consideration, though neither has been finalized. SK Hynix continues to evaluate alternative partnership models as talks progress.
Securing SK Hynix as a client would represent a significant milestone for Intel’s foundry operations. The company has been actively courting external manufacturers to bolster its contract chipmaking division, a core component of CEO Lip-Bu Tan’s broader turnaround strategy. Additionally, any agreement would align with U.S. policy objectives to expand domestic semiconductor production, adding another major memory manufacturer to America’s industrial base.
The negotiations carry particular weight given SK Hynix’s critical role in the artificial intelligence supply chain. As one of the world’s leading producers of high-bandwidth memory (HBM), the South Korean firm supplies a vital component for Nvidia’s AI accelerators. HBM enables these processors to manage the massive data throughput required for advanced AI workloads.
However, the proposed arrangement faces potential regulatory headwinds from South Korea. Advanced memory technologies, including those related to HBM, are classified as sensitive national assets. Reuters, citing three sources, reported that the South Korean government may oppose the transfer of advanced memory production capabilities to the United States, which could complicate or derail the deal.
The urgency behind these discussions stems from surging demand driven by the AI infrastructure buildout. Rapid data center expansion has intensified competition for advanced memory chips, contributing to a global shortage. In June, SK Hynix announced plans to double its production capacity over the next five years to meet sustained AI and cloud computing demand. Chairman Chey Tae-won emphasized this pressure to CNBC in July, stating that HBM demand is “enormous.”
SK Hynix is already advancing its American manufacturing presence through a separate initiative. Last month, the company broke ground on its first U.S. facility in Indiana. CEO Kwak Noh-Jung indicated that this plant is projected to establish Indiana as a primary HBM production hub in the United States by 2030. The Ohio proposal differs fundamentally from this greenfield project, as it would leverage Intel’s existing manufacturing infrastructure rather than building anew.
Ultimately, the Ohio discussions reflect a convergence of strategic needs: SK Hynix requires rapid scaling to support AI developers and cloud providers, while Intel seeks anchor tenants for its domestic fabrication lines. Should the two companies reach an agreement, SK Hynix would gain an alternative pathway to expand U.S.-based output alongside its Indiana operations. Nevertheless, the proposal remains under negotiation. Finalizing the arrangement will require resolving complex commercial, technical, and manufacturing considerations, particularly regarding the handling and export of advanced South Korean semiconductor technology.