SK Hynix (SKHY.US) reportedly plans to manufacture memory chips in the US for the first time, may lease Intel (INTC.US) Ohio factory or form a joint venture

According to reports from Zhitong Finance APP, South Korea's SK Hynix (SKHY.US) is reportedly in talks with Intel (INTC.US) over a deal that, if successful, would see SK Hynix produce memory chips in the US for the first time. One potential plan is for SK Hynix to lease part of Intel's long-planned wafer fab facilities in Ohio; another is to create a joint venture with Intel and major cloud service providers eager to secure memory chip supply.

However, sources say potential opposition from South Korea could pose a significant obstacle. One source stated that discussions are still exploratory, and emphasized that no decisions have been made; SK Hynix may also consider other deal structures.

In a statement, SK Hynix said it is "evaluating multiple measures, including establishing more production bases to enhance the competitiveness of its memory business," but "no decisions have been made at this time."

There are multiple strategic considerations in South Korea. The country has designated the semiconductor industry as a national strategic sector, requiring companies to obtain government approval before establishing overseas production facilities.

SK Hynix and Samsung Electronics have been asked by the Korean government to accelerate construction of the Yongin semiconductor industry cluster, and Seoul is also interested in using SK Hynix's US investment commitments as leverage in broader South Korea-US investment talks. Of the $350 billion investment plan South Korea proposed for the US, about $150 billion has already been allocated to the shipbuilding industry, with the remaining $200 billion still undecided. Seoul does not want this pool of funds to be locked in early by a single company.

Furthermore, because such technologies are considered sensitive, any agreement to produce advanced memory chips such as HBM or even DRAM could face opposition from the Korean government.

Intel declined to comment on what it called "speculation," but added that the company is still moving forward with its Ohio investment to prepare the site for operation.

Analysts pointed out that if this deal is reached, it would be a win-win for both Intel and a Trump administration—the former would get much-needed operating partners to share the massive cost of the Ohio facility, while the latter could tout it as another signature accomplishment in bringing semiconductor manufacturing back to the US.

The AI-driven memory chip shortage persists. The current boom in AI and data center investment has led to a severe supply shortage for memory chips, with SK Hynix holding a dominant position in the HBM market.

According to Counterpoint Research, in the second quarter of 2026, SK Hynix maintained its position as the global number one in HBM market share with 50% of revenue—a decrease from 58% in the previous quarter—while Samsung Electronics jumped from 21% to 33%, and Micron Technology ranked third with 18%. Competition is mounting for SK Hynix in the HBM sector, which is also partly driving its push to build capacity closer to US customers.