SK Hynix is in early talks with Intel to manufacture memory chips at Intel's Ohio facility for the first time, a move that would mark a major win for Intel's foundry business and support U.S. efforts to onshore semiconductor production.
SK Hynix is in early discussions with Intel to produce its memory chips on American soil for the first time, a development that would represent a significant customer win for Intel's struggling foundry business and advance the U.S. government's push to reshore semiconductor manufacturing.
Under one scenario being considered, SK Hynix would lease part of Intel's chipmaking facility in Ohio, according to people familiar with the matter. The two companies are also exploring a joint venture that would include Intel and major cloud firms as participants. Additional deal structures have not been ruled out.
The talks remain exploratory, and no decisions have been made, one of the sources said. Intel and SK Hynix did not respond to requests for comment.
News of the discussions sent shares of both companies higher in premarket trading on Wednesday. Intel rose 3.2%, while SK Hynix's Nasdaq-listed American depositary receipts gained 2.6%.
A deal would be a consequential milestone for Intel CEO Lip-Bu Tan, whose strategy rests heavily on attracting outside customers to Intel's foundry operation. Signing SK Hynix — one of the world's leading suppliers of high-bandwidth memory — would give that effort a marquee name and a direct connection to the AI hardware supply chain.
SK Hynix is a primary supplier of high-bandwidth memory, known as HBM, a component central to Nvidia's artificial intelligence chips. The rush to build out data centers has created a persistent shortage of memory, sharply driving up prices and enabling SK Hynix and rival Samsung to generate substantial profits. SK Hynix's South Korea-listed stock has risen 400% over the past year.
Any agreement to manufacture advanced memory such as HBM in the United States could face resistance from the South Korean government, which considers those technologies sensitive, according to three sources familiar with the matter.
SK Hynix has separately been expanding its U.S. footprint. Last month, the company broke ground on its first American facility, located in Indiana. CEO Kwak Noh-Jung said the $4 billion factory will make Indiana a "key HBM production base in America" by 2030. In June, the company announced plans to double overall capacity over the next five years.
Chairman Chey Tae-won told CNBC in July that demand for HBM is "enormous," reflecting the scale of appetite from AI infrastructure builders.
The potential Intel arrangement would layer on top of those existing plans, suggesting SK Hynix is weighing a broader U.S. manufacturing presence than its Indiana commitment alone. Whether that expansion takes the form of a lease, a joint venture, or another structure will depend on negotiations that are still in early stages — and on whether Seoul's concerns over technology transfer can be addressed.
TechEchelon Staff bylines are produced collectively by the newsroom for short, breaking, and wire-style coverage. Longer-form reporting is published under the responsible reporter's name.
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