SK hynix Negotiating Memory Production with Intel in the U.S.

[Financial News] It was reported on the 16th (local time) that SK Hynix is ​​negotiating with Intel to produce memory chips in the United States for the first time.
According to multiple sources, SK Hynix is ​​considering leasing part of Intel's long-planned semiconductor production facility in Ohio to produce memory chips as one of the most likely scenarios.
In addition, sources said that SK Hynix is ​​also considering establishing a joint venture with Intel and major cloud companies that are memory customers.
If this deal is finalized, it is expected to be a major achievement for the Donald Trump administration, which has been pressuring manufacturers to increase semiconductor production within the United States.
U.S. Commerce Secretary Howard Lutnick stated on the 2nd that tariffs on semiconductor products are being considered, saying, "Basically, it is a policy of 'If you produce here (in the U.S.), you do not pay tariffs. But if you do not produce here, be prepared to pay the price (tariffs) to enter the world's greatest market.'"
Generally, semiconductor production involves not only labor and facility construction costs but also significant cost increases if carried out within the United States, as most of the semiconductor supply chain is located in Asia.
Reuters reported on the day that SK Hynix has reasons to pursue chip production in the U.S., as it entered the Nasdaq through an American Depositary Receipt (ADR) listing last July and is currently building a next-generation HBM advanced packaging plant (fab) in Indiana.
SK Hynix is ​​investing approximately $4 billion to build a next-generation HBM advanced packaging plant in West Lafayette, Indiana, with the goal of mass production in the second half of 2029.
However, this facility does not manufacture wafer-unit memory chips themselves, but rather imports DRAM produced in Korea and other regions to process it into advanced HBM.
Sources also reported that the South Korean government's opposition could be a major obstacle to the negotiations between SK Hynix and Intel.
Although it is not yet known which memory chips, such as DRAM and NAND, will be produced in the U.S., the issue of domestic production of advanced memory could raise concerns for the South Korean government due to the sensitivity of the technology.
The Ministry of Trade, Industry and Energy stated that its position is that "cases related to 'national core technologies' will be subject to review under the Industrial Technology Protection Act."
SK Hynix stated in a statement sent to Reuters, "We are reviewing various options, including building additional production facilities, to strengthen the competitiveness of our memory business," but added, "No specific details have been decided at this stage."
Intel declined to comment on the report, calling it "speculation," but added that investment in Ohio is continuing.


[email protected] Lee Seok-woo, International Specialist Reporter