SK Hynix is in exploratory discussions with Intel about producing memory chips in the United States, according to people familiar with the matter cited by Reuters. A potential agreement could allow the South Korean company to lease part of Intel’s planned Ohio semiconductor site or create a joint venture involving Intel and major cloud companies seeking to secure memory supplies.

No deal has been finalised. SK Hynix said it is reviewing ways to establish additional production bases and strengthen its memory business, but that “no matters have been determined at this stage.” Intel declined to comment specifically on the talks and said it was continuing its investments in Ohio.

How SK Hynix could use Intel’s Ohio site

The proposed arrangement could give SK Hynix access to US manufacturing capacity without requiring it to build an entirely separate facility. Another option under discussion is a partnership between SK Hynix, Intel and unnamed cloud companies that want more predictable access to memory chips.

The exact types of memory that could be produced in the US have not been disclosed. That detail could be important because advanced technologies such as high-bandwidth memory, or HBM, and DRAM may be considered sensitive by South Korean authorities.

South Korea’s trade ministry said any decision would be up to SK Hynix, but a project involving national core technology would require review under the country’s Industrial Technology Protection Act.

Intel’s delayed Ohio investment

A partnership could also provide a potential use for Intel’s large Ohio project, whose production schedule has been pushed back. Intel announced the investment in 2022 and said it could reach up to $100 billion. Manufacturing at the site was originally expected to begin in 2025, but production has since slipped to at least 2030.

The possibility of a deal lifted both Intel’s and SK Hynix’s shares after the report emerged. For Intel, attracting a major memory producer could help improve the prospects for its Ohio expansion while bringing another chipmaker into the US manufacturing ecosystem.

AI demand and US chipmaking pressure

SK Hynix is facing pressure from customers and governments to increase output as demand for memory rises alongside artificial intelligence infrastructure and a broader chip shortage. Company chairman Chey Tae-won said in July that SK Hynix needed to build a factory in the US if possible.

Producing semiconductors in the US is more expensive than manufacturing them in South Korea. However, expanding American capacity could help SK Hynix respond to US policy pressure. Commerce Secretary Howard Lutnick has threatened 100% tariffs on South Korean and Taiwanese companies unless they commit to increasing chip production in the US.

SK Hynix is also expanding at home. The company announced a $38 billion investment in new DRAM and NAND fabrication plants in South Korea last month, while the government has encouraged it to develop a larger chipmaking cluster in the country’s southwest.