SK hynix eyes Intel's Ohio fabs for first U.S. memory chip production

SK hynix-Intel talks center on Ohio fab space and a possible joint venture

SK hynix is exploring several ways to establish its first U.S. memory chip production, with Intel's long-delayed Ohio manufacturing campus emerging as the leading candidate, according to three people familiar with the discussions cited by Reuters. One option would give SK hynix access to unused factory capacity at the Ohio site. A more ambitious structure could bring Intel, SK hynix and major cloud companies together in a partnership intended to expand the supply of memory used in AI infrastructure. SK hynix said it is reviewing options to strengthen its memory business, including additional production sites, but has made no final decision and is weighing several countries and locations. Intel declined to comment on what it described as speculation while reiterating that it continues to invest in preparing the Ohio site.

What could be produced and how Ohio differs from the Indiana project

The product mix remains unresolved. SK hynix manufactures conventional DRAM, NAND storage and high-bandwidth memory, the last of which has become a critical input for AI systems, and any Ohio output could mark the first HBM manufacturing plant in the United States. The talks differ in scope from SK hynix's existing U.S. footprint: a West Lafayette, Indiana, advanced HBM packaging facility confirmed in 2024 broke ground last month and is scheduled for mass production in the second half of 2029, with investment now exceeding $4 billion, but it will package and test chips using wafers manufactured in South Korea. An Ohio arrangement could for the first time bring wafer fabrication itself onto U.S. soil.

Intel's delayed Ohio timeline and the pressure to fill capacity

Intel's Ohio expansion has slipped repeatedly. Completion of the first fab is now expected around 2030, with operations beginning in 2030 or 2031; a second fab is scheduled for completion in 2031 and production in 2032. Billions of dollars remain tied up in the buildout, making a tenant or partner attractive to Intel. A deal would also align with U.S. policy pressure on chipmakers to expand domestic production, including threatened tariffs on overseas producers that fail to add American capacity.

Costs, tariffs and Seoul's strategic-technology review

Producing memory in the United States would carry a higher cost than SK hynix's established Asian operations, where the company benefits from an existing semiconductor ecosystem. South Korea treats some advanced chip technologies as strategically important, and the country's trade ministry said an investment involving designated national core technology would require review under its industrial technology protection law. That review process could complicate any move of sophisticated HBM or DRAM production overseas.

Market reaction

Intel shares rose on Wednesday following the report that SK hynix was interested in using one of Intel's U.S. fabs for memory chip manufacturing, reflecting investor speculation about a potential deal before any terms are finalized.