SK Hynix in Talks With Intel to Produce Memory Chips in the United States
- SK hynix and Intel are exploring a potential partnership to manufacture memory chips at Intel's Ohio One complex, according to three sources familiar with the negotiations reported by...
- The talks center on utilizing Intel’s under-construction infrastructure in Ohio rather than an outright acquisition of the plant.
- The negotiations occur against a backdrop of severe industry shortages driven by the rapid expansion of artificial intelligence and data centers.
SK hynix and Intel are exploring a potential partnership to manufacture memory chips at Intel’s Ohio One complex, according to three sources familiar with the negotiations reported by Reuters on September 16, 2026. The discussions include options for SK hynix to lease space within the facility or establish a joint venture involving major cloud service providers, marking a potential shift in domestic semiconductor manufacturing as global artificial intelligence infrastructure strains memory supply chains.
Evaluating Production Options at Ohio One
The talks center on utilizing Intel’s under-construction infrastructure in Ohio rather than an outright acquisition of the plant. According to sources cited in Reuters reporting, the proposals involve either leasing a portion of the manufacturing site or forming a collaborative business structure that would bring in prominent cloud computing companies seeking guaranteed memory allocation. SK hynix stated that it is reviewing measures such as building additional production bases to strengthen its memory business competitiveness, but emphasized that no final decisions have been made. Intel described the information as speculative while confirming that it continues investing in its Ohio facilities to prepare them for operation.
Demand for High-Bandwidth Memory and the AI Bottleneck
The negotiations occur against a backdrop of severe industry shortages driven by the rapid expansion of artificial intelligence and data centers. High-bandwidth memory, known as HBM, serves as a critical component in AI accelerators by facilitating the transfer of massive data volumes between processors and memory arrays. Memory makers have prioritized HBM production over standard consumer components, leading to supply tightening and rising costs for devices like Apple’s upcoming iPhone 17 lineup. While SK hynix ranks as a primary supplier of HBM technology, the specific product lines that would be manufactured in Ohio remain undefined in current discussions.
Contrasting Projects in Ohio and Indiana
The potential Ohio agreement is distinct from SK hynix’s ongoing development in Indiana. In August 2026, the company began construction on its first American facility in West Lafayette, Indiana, focusing on advanced HBM packaging rather than fabricating raw silicon wafers domestically. While the Indiana site has an established production target of 2029, the discussions regarding Intel’s Ohio One complex remain strictly exploratory. The Ohio facility itself carries an anticipated operational window between 2030 and 2031, according to broader project timelines.
Regulatory Scrutiny and Strategic Motivations
Manufacturing advanced memory in the United States involves significantly higher labor and construction costs compared to South Korea. Despite cost hurdles, SK Group Chairman Chey Tae-won stated in July 2026 that the company needed to establish a domestic American manufacturing footprint. For Intel, partnering with SK hynix could provide a prominent external customer for Intel Foundry services and make productive use of expanding infrastructure. However, sources familiar with the discussions cautioned that South Korea’s Ministry of Trade could subject any transfer of fundamental national technologies—such as advanced memory or HBM—to formal review under the Industrial Technology Protection Act, though no official regulatory objection has been raised.