SK Hynix has been reported to be in talks with Intel, planning to produce memory chips in the United States for the first time, with Intel's Ohio factory identified as the potential location. Potential arrangements include leasing production capacity or forming a joint venture with Intel and cloud computing companies. The negotiations are still in the exploratory stage, and approval from the South Korean government is seen as the biggest variable. If an agreement is reached, it would benefit both Intel, which is under pressure, and the Trump administration's strategy for chip localization.
According to a Reuters report on September 16, three informed sources revealed that South Korean semiconductor giant SK Hynix is negotiating cooperation with Intel, planning to produce memory chips domestically in the U.S. for the first time. The negotiations focus on Intel's chip manufacturing plant in Ohio.
Currently, there are two proposals:
Proposal 1: SK Hynix leases part of the production capacity at Intel's Ohio factory to directly carry out memory chip production locally.
Proposal 2: SK Hynix forms a joint venture with Intel and major cloud computing companies. The motivation for cloud providers is clear—they urgently wish to secure memory chip supplies. This comes against the backdrop of continued rapid investment in AI and data centers, which has caused a severe shortage of memory chips.
As for the specific types of chips to be produced, the report states that this information has not yet been obtained. SK Hynix's product line covers DRAM chips used in servers, PCs, and smartphones; NAND flash memory chips for long-term storage; and High Bandwidth Memory (HBM) for AI processors—in which SK Hynix is a global leading supplier.
The negotiations are currently still in the exploratory stage, with insiders emphasizing that "no decisions have been made" and that various cooperation structures remain possible. Following the news, shares of Intel and SK Hynix rose more than 2% in U.S. after-hours trading.
What this means for Intel and the Trump administration
This potential deal holds direct value for both parties, who are in urgent need of positive developments.
For Intel, the company has been under continuous pressure in recent years, casting uncertainty over the construction plans for its Ohio factory. If SK Hynix enters the picture, it would provide external support for this project.
The Trump administration has been pressuring chipmakers to establish manufacturing facilities in the United States. If SK Hynix proceeds with production in the U.S., it would represent a landmark achievement of this policy.
However, insiders note that potential opposition from the South Korean government may pose the biggest obstacle to the deal.
These concerns are well-founded. The South Korean government has long remained highly vigilant against the outflow of core domestic semiconductor technologies. SK Hynix’s memory chip manufacturing capabilities—particularly its HBM technology—fall within strategically sensitive areas. Securing policy approval from Seoul will directly determine whether the negotiations can come to fruition.