SK Hynix in talks with Intel on first U.S. memory chip deal, sources say

• Two scenarios under discussion: SK Hynix leasing part of Intel's Ohio facility, or forming a venture with Intel and major cloud firms to secure memory chip supplies amid acute shortages driven by AI demand
• South Korean government may oppose the deal if it involves 'national core technology' like advanced HBM or DRAM, requiring review under Industrial Technology Protection Act
• U.S. Commerce Secretary Howard Lutnick has threatened up to 100% tariffs on South Korean and Taiwanese chipmakers unless they commit to increased U.S. production, putting SK Hynix in a difficult position between Washington pressure and Seoul's leverage tactics

SK Hynix-Intel U.S. Memory Chip Manufacturing Deal Under Discussion

South Korean chipmaker SK Hynix is in talks with Intel about establishing its first U.S. memory chip manufacturing operation, according to sources familiar with the discussions. Two potential structures are being considered: SK Hynix leasing part of Intel's planned Ohio facility, or forming a joint venture with Intel and major cloud companies seeking to secure memory chip supplies.

Key Details:

• No final decisions have been made; talks remain exploratory
• SK Hynix's product lineup includes DRAM, NAND flash memory, and high-bandwidth memory (HBM) for AI applications
• Intel's Ohio facility, originally announced as a $100 billion investment with 2025 production start, has been delayed to 2030-2031
• Manufacturing costs in the U.S. are significantly higher than South Korea due to labor, construction, and supply chain factors

Major Hurdles:

The deal faces potential opposition from Seoul, as advanced memory technologies like HBM and DRAM are considered sensitive under South Korea's Industrial Technology Protection Act. The South Korean government has been pushing SK Hynix and Samsung to build domestic chip facilities.

Geopolitical Context:

• U.S. Commerce Secretary Howard Lutnick has threatened up to 100% tariffs on South Korean and Taiwanese chipmakers without increased U.S. production
• The deal would benefit the Trump administration's reshoring efforts amid AI-driven memory chip shortages
• South Korea made a $350 billion U.S. investment commitment last year for tariff relief; $200 billion remains unallocated
• Seoul may use SK Hynix's potential investment as leverage in ongoing negotiations

A deal would provide financial relief to struggling Intel while addressing acute memory chip shortages driven by AI and data center demand.