Looks like SK hynix wants to make memory chips on US soil and it could work with Intel to do it

SK hynix is reportedly exploring U.S. chip manufacturing, following Samsung and TSMC’s lead, with discussions underway to either lease Intel’s planned Ohio facility or form a joint venture involving cloud firms. Analysts highlight the potential joint venture with hyperscalers as a critical development, emphasizing shared risk and infrastructure benefits for both Intel and SK hynix. The talks follow earlier reports that SK hynix could use Intel Foundry to produce base dies, adding credibility to the rumors despite their speculative nature.

SK hynix already operates limited U.S. production for packaging, not wafer fabrication, with recent groundbreaking efforts. The proposed deal with Intel would focus on actual chip manufacturing, addressing a gap in SK hynix’s U.S. operations. Analysts suggest this collaboration could be more significant than standalone manufacturing plans, given the involvement of hyperscalers seeking memory supply.

Intel, facing recent financial and operational challenges including a 10% stake granted to the U.S. government last year, may benefit from such a partnership by easing production pressures. The company has shown recent signs of recovery, reflected in improved earnings reports and a modest stock price increase following the potential deal’s emergence.

South Korea’s government may oppose SK hynix’s shift toward U.S. manufacturing, but using Intel’s fabs could mitigate concerns by reducing capital investment and physical relocation. This approach allows SK hynix to maintain proximity to its Korean operations while meeting U.S. demand.