Overview
- Reuters and other outlets reported on Wednesday that SK Hynix is in early, exploratory talks with Intel about making memory chips in the United States.
- Two deal structures being discussed include SK Hynix leasing space at Intel’s long-delayed Ohio complex or forming a joint venture that may include major cloud providers seeking secure memory supplies.
- SK Hynix has said it is reviewing options and stressed no decisions have been made while Intel called the reports speculation and said it is continuing investments to ready the Ohio site.
- Any move to produce advanced memory such as HBM or DRAM in the U.S. would likely trigger review under South Korea’s Industrial Technology Protection Act because those technologies are treated as sensitive.
- Market reaction was positive on the reports and on SK Hynix’s recent union-approved profit-sharing deal, but major constraints remain from multiyear Ohio timelines, higher U.S. manufacturing costs, and unresolved regulatory and commercial hurdles.