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SK Hynix Eyes U.S. Chip Production with Intel
16 Sep
Summary
- SK Hynix explores manufacturing memory chips in the U.S. with Intel.
- Deal could involve leasing Intel's Ohio facility or a new venture.
- Potential Seoul opposition looms over sensitive technology transfer.
South Korea's SK Hynix is reportedly in talks with Intel to manufacture memory chips on U.S. soil for the first time. Under consideration is leasing part of Intel's planned facility in Ohio or forming a venture involving major cloud companies seeking to secure chip supplies. This move aligns with U.S. pressure on chipmakers to increase domestic production amid a shortage fueled by AI and data center demands.
However, the potential deal faces a significant obstacle: opposition from Seoul. The South Korean government views advanced memory technologies like HBM and DRAM as sensitive and subject to review under the Industrial Technology Protection Act. While Intel is proceeding with its Ohio site development, with production slated for 2025-2031, SK Hynix is evaluating various measures to enhance its business competitiveness.
Manufacturing in the U.S. presents higher costs compared to South Korea due to labor, construction, and supply chain factors. Despite this, SK Hynix's chairman expressed the need for a U.S. factory. The discussions also occur amidst broader negotiations between South Korea and the U.S. regarding substantial investment commitments.
