SK Hynix in talks with Intel about deal to make memory chips in US for the first time, sources say
SK Hynix is in talks with Intel to manufacture memory chips in the US for the first time. The South Korean chipmaker may lease space at Intel's Ohio facility or form a joint venture with Intel and cloud firms. Such a deal would alleviate pressure on Intel and support US chipmaking efforts. However, potential opposition from the South Korean government over sensitive technology is a major hurdle. Intel shares rose 5.2 percent in pre-market trading, while SK Hynix stock finished 4.1 percent higher in Seoul.
SK Hynix's strategic calculus, not Intel's relief, is the core development. Chairman Chey Tae-won has already stated the company needs a US factory due to customer and country pressure. This confirms the US push for domestic chip production is working. SK Hynix's Nasdaq listing in July further underscores its commitment to a US presence.
For Seoul, this deal is a test of its industrial technology protection. Any agreement to produce advanced memory like HBM or even DRAM will face scrutiny under the Industrial Technology Protection Act. South Korea risks losing control over critical national core technologies. This puts the trade ministry in a difficult position, balancing national security with a major company's global expansion.
The thing to watch is the type of chips SK Hynix would produce in Ohio. If it's advanced HBM, expect strong opposition from Seoul. If it's less sensitive DRAM, the path is clearer. Manufacturing costs are higher in the US, but political and customer pressure now outweighs that economic disadvantage for SK Hynix.
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SK Hynix reportedly in talks with Intel to build memory chips in US
Our earlier report confirmed SK Hynix's talks with Intel to build memory chips in the US.
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