South Korean semiconductor giant SK Hynix is in preliminary talks with Intel to manufacture RAM chips on American soil for the first time.
Under options currently under discussion, SK Hynix could either lease manufacturing space at Intel’s planned factory campus in Ohio or establish a joint venture alongside major cloud-service providers.
The negotiations mark a significant shift as global chipmakers face mounting pressure to expand U.S. manufacturing footprints amidst worsening global semiconductor shortages.
SK Hynix cautioned that negotiations remain ongoing with no binding agreements reached.
“SK Hynix is exploring various options to strengthen its global competitiveness, but no specific plans or arrangements have been finalized at this time,” the company said in a statement. “No decisions have been made regarding the two scenarios mentioned in the article.”
Intel has not publicly responded to requests for comment.
Strategic U.S. Expansion and Market Dynamics
The potential Ohio facility would expand SK Hynix’s footprint beyond its current U.S. investments.
- Indiana AI Facility: SK Hynix is currently constructing a $3.8 billion research and advanced packaging site in West Lafayette, Indiana.
- Operational Timeline: Mass production at the Indiana site is slated for 2029.
- Supply Chain Role: The Indiana plant will import DRAM wafers produced in South Korea and package them into high-bandwidth memory (HBM) chips for AI applications.
- Ohio Uncertainties: It remains undecided which specific memory chip architectures would be fabricated at the potential Ohio site.
Demand for HBM RAM chips has skyrocketed due to rapid growth in data center AI infrastructure, significantly boosting SK Hynix’s market standing.
Trade Policy and Regulatory Hurdles
The domestic production push coincides with tightening trade measures from the Trump administration aimed at expanding U.S. chip manufacturing.The White House signaled potential broader tariffs on foreign semiconductor imports while dangling tariff relief for vendors that build factories domestically.
SK Group Chairman Chey Tae-won previously expressed support for American manufacturing efforts, stating the firm should erect U.S. facilities alongside its domestic operations in South Korea’s Honam region if feasible. SK Hynix also listed American depository receipts on the Nasdaq to broaden its exposure to U.S. investors.
However, moving advanced chip fabrication overseas faces steep regulatory barriers in Seoul. South Korean law regulates the export of strategically critical technology to prevent foreign transfers.
While South Korean officials state the business decision rests with SK Hynix, any transfer involving core semiconductor IP would trigger a formal government review.
Intel and SK Hynix share a history of major cross-border transactions, highlighted by SK Hynix’s $9 billion acquisition of Intel’s NAND flash-memory business in 2020.
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