SK Hynix in early talks with Intel on US memory-chip production at Ohio site

Talks center on Intel's Ohio site and a possible cloud-linked venture

SK Hynix is in exploratory discussions with Intel about a deal that would mark the first time the South Korean memory maker manufactures chips on US soil. Three people familiar with the talks told Reuters that under one scenario SK Hynix would lease part of Intel's long-planned chipmaking facility in Ohio, while under another it could form a venture with Intel and major cloud firms seeking to lock in memory-chip supplies. One source described the discussions as exploratory and stressed that no decisions have been made, noting SK Hynix might also consider other structures. Reuters was unable to determine which specific memory products might be produced in Ohio. SK Hynix's lineup includes DRAM for servers, PCs and smartphones, NAND flash storage, and high-bandwidth memory, or HBM, used in AI processing units, in which the company is the leading supplier.

Companies and Seoul play down progress while leaving options open

In a statement to Reuters on September 16, SK Hynix said it is "reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business," but added that "no matters have been determined at this stage." Intel declined to comment on what it called speculation, but said it was continuing with investments in Ohio to ready the site. South Korea's trade ministry said any decision would be at the company's discretion. The three sources said any agreement to produce advanced memory such as HBM or even DRAM could run into opposition from the South Korean government because those technologies are considered sensitive. The exact product to be made in Ohio has not been disclosed.

Intel's Ohio build and SK Hynix's existing US footprint

Intel has said it plans to invest more than $28 billion in two leading-edge fabs at the Ohio site, though it slowed the timetable in 2025, with the first module now expected to begin operations between 2030 and 2031 and the second scheduled for 2032. Any SK Hynix arrangement would therefore be a long-term manufacturing move rather than a near-term response to current memory shortages. SK Hynix already has a separate US footprint: in August the company broke ground on an Indiana AI-memory facility that will package and test next-generation HBM and is expected to begin supplying US customers in the second half of 2029. The two firms have a prior relationship dating to a 2020 agreement under which Intel agreed to sell its NAND memory and storage business to SK Hynix for $9 billion.

Strategic context: AI demand and US policy pressure

The talks come as relentless investment in AI and data centers fuels an acute shortage of memory chips, prompting the Trump administration to pressure chipmakers to build in the United States. HBM sits close to accelerators such as Nvidia GPUs and feeds them data at extremely high speed, while conventional DRAM supplies working memory across servers and other systems; both have become central constraints in data-center expansion. A deal would relieve pressure on Intel, which has been struggling, and would mark a big win for the administration. South Korean government sensitivity around advanced memory remains a major hurdle, the sources said.