SK Hynix is in exploratory talks with Intel to manufacture memory chips in the U.S. for the first time, potentially leasing part of Intel's delayed Ohio facility or forming a joint venture with cloud firms. Driven by an AI-fueled memory shortage, the deal would aid Intel's struggling foundry business and mark a win for Washington's domestic manufacturing push. However, the plan faces high U.S. labor costs and potential opposition from Seoul over the export of sensitive core technologies.
SK Hynix-Intel US manufacturing talks
- ▪As an alternative to SK Hynix leasing part of Intel's chipmaking facility in Ohio, under another potential scenario in talks between SK Hynix and Intel about manufacturing memory chips in the U.S., SK Hynix could form a joint venture with Intel and major cloud firms seeking to secure memory chip supplies
- ▪Under one potential scenario in talks between SK Hynix and Intel about manufacturing memory chips in the U.S., SK Hynix would lease part of Intel's long-planned chipmaking facility in Ohio
- ▪South Korea's SK Hynix is in exploratory talks with Intel to manufacture memory chips in the United States for the first time
AI-driven memory chip shortage
- ▪SK Hynix Chairman Chey Tae-won stated in July 2026 that the company faces enormous pressure and lobbying from customers and countries to supply more chips
- ▪Relentless investment in artificial intelligence and data centers has fueled an acute shortage of memory chips, driving up prices and profits
- ▪SK Hynix broke ground in August 2026 on a $4 billion chip packaging facility in Indiana, planned to become a key high-bandwidth memory production base by 2030
South Korean government technology concerns
- ▪Any agreement to produce advanced memory like high-bandwidth memory or DRAM in the United States could face opposition from the South Korean government
- ▪The South Korean government has urged SK Hynix and Samsung Electronics to accelerate plans to build a new cluster of chipmaking facilities in South Korea's southwest
- ▪South Korea's trade ministry stated that any SK Hynix U.S. production plan involving a national core technology would be subject to review under the Industrial Technology Protection Act
US tariff pressure on chipmakers
- ▪U.S. Commerce Secretary Howard Lutnick has threatened to impose up to 100% tariffs on South Korean and Taiwanese companies unless they increase production on American soil
- ▪The South Korean government is seeking to use any U.S. investment by SK Hynix as leverage in ongoing tariff and investment negotiations with Washington
Intel Ohio facility challenges
- ▪Manufacturing semiconductors in the United States entails significantly higher labor and construction costs than in South Korea, alongside supply chain concentration in Asia
- ▪Intel announced in 2022 that it would invest up to $100 billion in its Ohio chipmaking complex, but completion of the two plants at that Ohio complex has been delayed to 2030 and 2031
Debatable claims
- ▪The US should impose high tariffs on foreign chipmakers to force domestic production
- ▪South Korea should restrict its semiconductor companies from manufacturing advanced technologies abroad
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