SK Hynix explores partnership with Intel for chip production in the US
South Korean semiconductor company SK Hynix is exploring a deal with Intel to produce memory chips in the United States.
According to a report from GSM Arena on Wednesday (16/9) local time, the company is considering two primary options. SK Hynix could lease part of Intel’s chip production facilities in Ohio or establish a joint venture alongside Intel and several large cloud companies that are currently striving to secure memory chip supplies.
However, these discussions are still in the exploratory stage and have not yet resulted in a final agreement. SK Hynix is reportedly considering various steps, including building additional production bases to strengthen its memory business competitiveness, but no final decision has been made.
Intel previously announced plans for an investment of up to US$100 billion for its production facilities in Ohio in 202へ. Production at the plant was originally scheduled to begin in 2025, but the timeline has now been pushed back to at least 2030.
Potential cooperation with SK Hynix is seen as a way to provide additional utility for the facilities amidst construction and production delays. Following reports of these discussions, shares of both Intel and SK Hynix recorded gains.
If the agreement includes the production of advanced memory technologies such as HBM (High Bandwidth Memory) or DRAM, the South Korean government may conduct a review, as such memory is categorised as sensitive technology. The South Korean Ministry of Trade stated that the decision regarding the cooperation rests with SK Hynix. However, if the deal involves “national core technology,” the plan will be subject to review under the Industrial Technology Protection Act.
SK Group Chairman Chey Tae-won stated in July that the company needs to build production facilities in the United States if possible. This statement was made as the company faces the need to expand production capacity to meet market demand.
On the other hand, the South Korean government is also encouraging SK Hynix to expand its production base domestically. In August, the company announced plans to invest more than US$38 billion to build new DRAM and NAND production facilities in South Korea.
Under these circumstances, a partnership with Intel could serve as one of the options for SK Hynix to increase memory production in the United States while simultaneously meeting the global market’s demand for increased chip supplies.