SK Hynix May Tap Intel’s Ohio Fab To Make Memory Chips In The USA

Domestic semiconductor manufacturing might be about to get a very interesting shake-up. According to a recent report, SK hynix is in discussions with Intel about a potential partnership to manufacture memory chips in the United States, and specifically at Intel's massive Ohio fab site. If an agreement is finalized—and that's a big 'if' at this early stage—it would mark the first time the South Korean memory giant produces chips on US soil.

Nothing is set in stone yet, but multiple people who are supposedly familiar with the matter told Reuters that there are several potential scenarios at play, one of which is a joint venture between SK hynix and Intel. That would arguably be a bigger shakeup, versus just an agreement to leverage Intel's Ohio fab capacity.

Either way, there are big implications here if a deal comes to fruition, both for the chip giants involved and the tech industry at large. It's not clear exactly what type of memory chips SK hynix has an interest in producing in the U.S., but global demand for high-bandwidth memory (HBM) and advanced DRAM is running at an all-time high, fueled mostly by rapid buildouts of AI data centers. For SK hynix, setting up shop in the U.S. could help shield the company from supply chain delays and expensive tariffs.

For Intel, this would be another validation for its Foundry business, which has been a point of focus since Lip-Bu Tan came on as CEO following Pat Gelsinger's abrupt departure. Securing a partnership with one of the world's biggest memory suppliers would be yet another vote of confidence that its domestic fabs can handle high-volume production for external customers outside of its own product ecosystem.

All that said, the report notes that SK hynix could run into opposition from the South Korean government, as it considers the company's advanced memory technologies as being sensitive. So even if SK hynix and Intel agree to terms, there is still a big hurdle to overcome.