SK Hynix in talks with Intel to produce memory chips in US for the first time amid Washington pressure, sources say

South Korean memory chip titan SK Hynix is engaged in early-stage discussions with Intel regarding a landmark collaboration that would bring advanced memory chip manufacturing to the United States for the first time.

According to industry sources, the discussions center on potential frameworks where SK Hynix could utilize or lease space within Intel’s high-profile, multi-billion-dollar chip fabrication complex in Ohio.

Alternative structures being floated include a joint venture involving Intel alongside major cloud computing companies seeking to lock down guaranteed domestic supplies of high-demand memory components.

While SK Hynix is currently building an advanced packaging facility in Indiana, it does not yet produce raw DRAM or foundational memory wafers on American soil.

Mitigating Trade and Tariff Pressures:

Facing intense pressure from Washington, including threats of heavy tariffs on foreign semiconductor imports manufacturers are scrambling to localize production lines directly inside the United States.

For Intel, partnering with a dominant memory leader like SK Hynix offers a strategic way to maximize capacity and validate its foundry model at its heavily-delayed Ohio site.

As per geopolitical shift any finalized agreement faces delicate hurdles, balancing Washington's aggressive push for domestic tech manufacturing against Seoul's strategic defense of its core national semiconductor technologies.

As reported by Reuters, one of the sources described the talks as exploratory and stressed that no decisions have been made, adding that SK Hynix might also consider other ways to structure the deal.

The product lineup includes DRAM (dynamic random-access memory) chips used in servers, PCs and smartphones and NAND flash memory chips that provide long-term storage memory.

It is also the leading supplier of high-bandwidth memory (HBM) used in AI processing units.

Any finalized agreement faces delicate hurdles, balancing Washington's aggressive push for domestic tech manufacturing against Seoul's strategic defense of its core national semiconductor technologies.

Experts weigh, any agreement to produce advanced memory such as HBM or even DRAM could run into opposition from the South Korean government as those technologies are considered sensitive, said the three sources who declined to be identified as the information is not public.

SK Hynix stated that it is "reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business," adding that "no matters have been determined at this stage." Intel has not yet responded to requests for comment on the latest update.