SK Hynix and Intel Discuss Memory Chip Manufacturing in the United States
South Korean memory chip maker SK Hynix is evaluating options with Intel to lease facilities or form a joint venture in Ohio to produce RAM chips in the U.S.
South Korean memory chip giant SK Hynix is holding talks with Intel to manufacture RAM chips in the United States for the first time. The parties are discussing various options, such as leasing space at Intel's planned factory in Ohio or establishing a joint venture that could also include cloud service providers.
Potential Cooperation Options
South Korean memory chip giant SK Hynix is holding discussions with Intel on various alternatives to carry out chip manufacturing in the United States. Among the evaluated options is the possibility of SK Hynix leasing space in Intel's planned factory in Ohio.
The companies have also put on the table the possibility of establishing a joint venture that could encompass cloud service providers.
Statement by SK Hynix
In an official statement made by SK Hynix, it was stated that various options are being examined to increase global competitiveness, but there are no finalized plans or arrangements at this stage.
Company officials emphasized that no decision has yet been made regarding the two scenarios mentioned in the reports.
Other Investments and Production Plans in the U.S.
The rising demand for high-bandwidth RAM chips for data centers used in artificial intelligence applications has greatly benefited SK Hynix. The company is building an advanced packaging and research facility worth $3.8 billion in West Lafayette, Indiana.
At this facility, where mass production is expected to begin in 2029, DRAM wafers produced in South Korea will be packaged and turned into HBM chips.
Political Developments and Management Approach
Amidst the deepening global chip shortage, the U.S. administration continues its efforts to expand chip manufacturing on domestic soil. The White House announced in January that broad tariffs could be imposed on semiconductor imports and that tax reliefs could be provided to companies producing in the domestic market.
SK Group Chairman Chey Tae-won stated in July that he supports the establishment of chip factories in the U.S.
Government Review and Past Relations
Commercial relations have also existed between Intel and SK Hynix in the past, with Intel selling its NAND flash memory unit to SK Hynix for $9 billion in 2020. It is stated that the potential partnership plan in the U.S. may be subject to government review under South Korean law aimed at preventing the transfer of strategic chip technologies abroad.