SK Hynix Explores U.S. Memory Chip Deal With Intel

SK Hynix is holding exploratory talks with Intel to manufacture memory chips on U.S. soil for the first time, as South Korean semiconductor producers navigate rising political pressure to build domestic manufacturing capacity. Under the proposals under discussion, the companies are evaluating potential deal structures including leasing space at Intel's Ohio facility or establishing a joint venture involving major cloud providers.

"SK hynix is exploring various options to strengthen its global competitiveness, but no specific plans or arrangements have been finalized at this time," the company said in a statement on Wednesday, adding that "No decisions have been made regarding the two scenarios mentioned in the article."

Financial markets responded immediately to the reports. According to a CNBC report, Intel shares surged 5.5% at the market open on Wednesday, while SK Hynix stock finished 4.1% higher in trading sessions in Seoul.

What Is Driving the U.S. Expansion Talks?

The discussions come amid intensifying pressure from Washington officials for major semiconductor firms to onshore critical supply chains. SK Group chairman Chey Tae-won signaled openness to domestic U.S. production during public remarks in July.

"I think we need to build a factory in the United States. If possible, I believe we should build it," said Chey Tae-won, chairman of the SK Group conglomerate, in July regarding U.S. manufacturing.

Deal Structures and Regulatory Hurdles

According to a Reuters report, the talks remain in an exploratory phase. One of the sources cautioned that no final decisions have been reached and that alternative operational structures could emerge as negotiations proceed.

Beyond commercial terms with Intel, any partnership between the South Korean memory maker and a U.S. chipmaker must navigate potential national technology and security hurdles from Seoul. South Korea maintains strict regulatory frameworks protecting core semiconductor technologies from unauthorized overseas transfer.