Intel and SK Hynix Consider Joint US Memory Chip Venture
South Korea’s SK Hynix (KRX:000660,OTCPL:HXSCL) is reportedly in negotiations with Intel (NASDAQ:INTC) to manufacture memory chips in the US for the first time, according to a Reuters exclusive.
Discussions center on two potential operational structures: SK Hynix could lease a portion of Intel’s delayed semiconductor manufacturing site in Ohio, or form a joint venture involving Intel and major cloud providers seeking to secure long-term memory supplies.
A manufacturing partnership would ease operational and financial strain on Intel, which is partially owned by the US government.
Intel announced a US$100 billion plan in 2022 to build the Ohio complex, but construction delays pushed completion of its two fabrication plants from 2025 to 2030 and 2031. To support capital expenditures and working capital due to sustained AI compute demand, the company launched a US$15 billion public offering of common stock in August 2026.
For SK Hynix, a US fabrication footprint would address pressure from American technology clients and federal officials.
The South Korean company, which completed a secondary listing on the Nasdaq in July and is constructing a memory packaging plant in Indiana, crossed the US$1 trillion market capitalization threshold in May 2026 alongside Micron Technology as demand for high-bandwidth memory (HBM) surged.
SK Group Chairman Chey Tae-won acknowledged those commercial pressures in July, stating, "I think we need to build a factory in the United States. If possible, I believe we should build it."
Washington has continued to escalate pressure on foreign semiconductor producers to expand domestic manufacturing. US Commerce Secretary Howard Lutnick has threatened tariffs of up to 100 percent on South Korean and Taiwanese chipmakers unless they increase production capacity on American soil.
However, US fabrication carries substantially higher labor, construction, and supply chain costs compared to existing Asian production hubs.
Addressing the reports, SK Hynix stated that it is "reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business," but "no matters have been determined at this stage."
The company subsequently issued a formal statement clarifying that "nothing has been finalized regarding cooperation with any specific companies mentioned in the article or memory chip production in the United States."
Intel declined to comment beyond stating that it is continuing investments to prepare the Ohio site.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
