South Korean SK Hynix is reportedly in talks with Intel to produce memory chips in the US for the first time. While no definitive decision has been made yet, this initiative could face high costs and objections from South Korea.
Intel could use its Ohio facility
According to information from three Reuters sources, SK Hynix is holding **negotiations with Intel** to begin memory chip production on US soil. The discussions are said to be in an early stage, and **no final decision has been reached**.
SK Hynix stated to Reuters that it is evaluating various options, including establishing additional production facilities to enhance the competitiveness of its memory operations, but no decision has been made at this stage.
One of the options on the table is for SK Hynix to lease a portion of Intel's long-planned chip manufacturing facility in Ohio. Another scenario involves establishing a joint venture with the participation of SK Hynix, Intel, and major cloud companies seeking to secure memory supply. The company also has the possibility of implementing the agreement with a different structure.
Which memory chips will be produced?
While discussions between the parties continue, it is not yet known which types of memory chips would be produced at the Ohio facility if an agreement is reached. SK Hynix's product portfolio includes **DRAM** memory used in servers, computers, and smartphones, **NAND** flash memory used for long-term data storage, and **HBM** memory used in artificial intelligence processing units. The company is among the leading suppliers in the HBM sector.
Sources indicate that the plan to produce advanced memory technologies such as HBM and DRAM in the US could face potential objections from the **South Korean** government. These technologies are considered **strategic products** by the Seoul administration.
High production costs in the US
Semiconductor manufacturing in the US is more costly compared to South Korea due to high labor and construction expenses, as well as an Asia-centric supply chain. Despite this, pressure from customers and governments to move production to the US is prompting SK Hynix to consider this investment option. The company's Chairman, Chey Tae-won, stated in July that a factory should be established in the US.
On Intel's side, the **$100 billion Ohio chip manufacturing complex**, announced in 2022, is not progressing at the expected pace. The completion date for the two factories, initially planned to start production in 2025, has been **postponed to 2030 and 2031**.
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