SK Hynix and Intel Discuss Potential US-Based Memory Chip Production
In what could be a game-changing move for the global semiconductor industry, South Korea’s SK Hynix—the world’s second-largest memory chipmaker and a key supplier of high-bandwidth memory (HBM) to Nvidia—is reportedly in preliminary talks with Intel about manufacturing memory chips in the US for the first time. This information comes from Reuters, who cite three individuals familiar with the discussions.
Two potential scenarios are currently under discussion. In the first, SK Hynix could lease a portion of Intel’s massive $28 billion chip manufacturing campus in Ohio. This facility has been under development for several years, but it is not anticipated to be fully operational until 2030 or 2031. The second scenario involves the formation of a joint venture between SK Hynix, Intel, and major cloud companies who are keen to secure memory chip supplies as demand driven by AI continues to rise.
The news was well-received by the markets: Intel shares surged over 5% in premarket trading, while SK Hynix’s Nasdaq-listed shares saw an increase of approximately 2%. A deal of this nature could provide a significant boost to Intel’s struggling foundry business and is in line with the Trump administration’s efforts to bring advanced semiconductor manufacturing back to the US. However, several obstacles remain. Chip manufacturing in the US is significantly more expensive than in South Korea, and the Seoul government has indicated that any deal involving national core technologies would be subject to review under South Korea’s Industrial Technology Protection Act. Both companies have stated that no specific plans have been finalized.
Source: CNBC – Intel, SK Hynix Shares Jump on U.S. Memory Chip Manufacturing Report