‘Talks with Intel on U.S. Memory Production’... Will SK hynix Accelerate Expansion of Overseas Production Bases?

[Financial News] SK hynix is reportedly considering partnering with Intel to produce memory semiconductors in the United States for the first time. As the company keeps open the possibility of diversifying its global production bases to meet growing demand for artificial intelligence (AI) memory, specific cooperation scenarios for wafer production, or the front-end process, in the U.S. have also been discussed. Attention is now focused on whether SK hynix’s efforts to expand its overseas production bases will become more concrete. 
According to major foreign media outlets and the semiconductor industry on the 16th, SK hynix is reportedly considering leasing part of a semiconductor production facility that Intel has been planning for years in Ohio and using it to produce memory chips. A plan to establish a joint venture with Intel and major memory customers has also been raised.
However, an SK hynix official said, "We are reviewing various options to strengthen the competitiveness of our memory business, but nothing has been finalized at this time." 
Although no specific details have been decided, SK hynix is accelerating the expansion of its domestic and overseas production bases to meet surging demand for AI memory. In South Korea, the company plans to begin construction next year on Cheongju M17 and Yongin Y2 in succession, investing a total of 54.3 trillion won in the two new fabs. 
Additional overseas production facilities are also drawing attention. In the United States, SK hynix is investing approximately $4 billion (approximately 5.48 trillion won) to build an advanced packaging facility for next-generation high-bandwidth memory (HBM) in West Lafayette, Indiana. The facility is targeting mass production in the second half of 2029. If memory production using Intel’s facility in Ohio becomes a reality, SK hynix’s U.S. production operations would expand from the back-end process to the front-end process.
SK hynix has also left open the possibility of securing additional production bases. In an interview with foreign media shortly after the Nasdaq listing ceremony for SK hynix’s American depositary receipts (ADRs), SK Group Chairman Chey Tae-won said, "If suitable locations and conditions are in place, additional investment in semiconductor production facilities in the United States is also possible." 
The remarks were interpreted to mean that SK hynix could consider investing in a U.S. memory production plant if conditions involving power, water, labor, and the supply chain are secured. Chey had also said that investment in a semiconductor production facility in Japan was "under review." 
[email protected] Lim Soo-bin Reporter