SK Hynix and Intel Explore First U.S. Memory Chip Deal

SK Hynix is in exploratory talks with Intel to make memory chips in the U.S. for the first time, though both companies stress nothing is finalized.

Reuters, relayed by CNBC and TechCrunch, reported Wednesday that SK Hynix is in talks with Intel about manufacturing memory chips in the United States for the first time. Under one scenario, SK Hynix would lease part of Intel's long-planned chipmaking facility in Ohio; under another, the companies could form a joint venture with major cloud firms keen to lock in memory supplies. The talks are described as exploratory, and SK Hynix said no specific plans or arrangements have been finalized.

A deal would be a significant win for Intel, which has struggled and is seeking marquee customers for its foundry business — a key pillar of CEO Lip-Bu Tan's strategy. Intel rose about 5% in premarket trading on the report while SK Hynix's Nasdaq-listed shares climbed, per CNBC. It would also advance U.S. government efforts to bring more semiconductor manufacturing to America amid an acute memory chip shortage driven by AI data center buildout.

Three sources familiar with the discussions described the talks as exploratory, Reuters reported. SK Hynix said in a statement that it is 'exploring various options to strengthen its global competitiveness' but that 'no specific plans or arrangements have been finalized.' It added that no decisions have been made regarding the two scenarios mentioned. Intel declined to comment on what it called speculation but said it continues investing in Ohio to ready the site.

SK Hynix is one of the world's leading suppliers of high-bandwidth memory (HBM), a key component of Nvidia's AI chips, and has been a major beneficiary of the AI boom — its South Korea-listed stock is up 400% over the last year, per CNBC. The company already broke ground on a $4 billion packaging facility in Indiana, and Reuters notes U.S. Commerce Secretary Howard Lutnick has threatened tariffs of up to 100% on South Korean chipmakers that do not expand U.S. production.

South Korea could present a major obstacle. Any agreement to produce advanced memory such as HBM or even DRAM could face opposition from Seoul, which considers those technologies sensitive, Reuters reported. Korea's trade ministry said decisions involving 'national core technology' would be subject to review under the Industrial Technology Protection Act. Reuters also notes Washington has pressured Seoul over a $350 billion investment commitment, with $200 billion still undecided.

Nothing is confirmed. SK Hynix published a statement saying 'no plans have been confirmed' regarding the reported talks and that nothing has been finalized regarding cooperation with any specific companies mentioned. TechCrunch notes it remains unclear what types of memory chips would be produced in Ohio if a deal goes through. Reuters points out the two companies have done business before — SK Hynix agreed in 2020 to buy Intel's NAND flash business for $9 billion.