SK Hynix Weighs First-Ever U.S. Memory Chip Production, With Intel’s Ohio Site on the Table

SK hynix is in discussions with Intel about manufacturing memory chips on U.S. soil for the first time, according to a Reuters report published Wednesday. The talks mark a potential shift for the South Korean memory giant, which has historically concentrated its production footprint in Asia.

Two structural options are reportedly under consideration. The first would see SK hynix lease a portion of Intel’s chipmaking campus in New Albany, Ohio — a massive fabrication project that has faced repeated delays since its announcement. The second would establish a joint venture involving Intel alongside major cloud providers seeking to lock in reliable access to memory supply, a growing priority as AI data center buildouts strain global memory availability.

Market Reaction

Investors responded quickly to the report. Intel shares climbed 4.72% in Wednesday trading to $95.80, up from a prior close of $91.48, bringing the company’s market capitalization to approximately $423 billion. SK hynix saw an even sharper move, rising 8.84% to $177.00 from a previous close of $162.62, valuing the memory maker at roughly $904 billion.

The optimism around Intel’s side of the potential deal is tied to its Ohio situation. The company’s flagship Ohio campus — intended as a cornerstone of its foundry ambitions — has run years behind its original timeline, and a key challenge has been securing enough committed demand to justify the scale of the buildout. A memory-manufacturing tenant or joint venture could give the site a clearer path to utilization, though no agreement has been announced and terms remain undefined.

For SK hynix, U.S.-based production would represent a notable strategic expansion. The company is a leading supplier of DRAM, including server memory used heavily in AI infrastructure, and domestic manufacturing could align with customers’ growing interest in geographically diversified supply chains.

It remains unclear how advanced the discussions are, whether either structural option is favored, or what role cloud companies would play in a joint venture scenario. Neither company has formally confirmed the talks beyond the reported coverage.

What to watch

• Any formal confirmation or announcement from Intel or SK hynix regarding the negotiations.
• Details on whether a lease arrangement or joint venture structure emerges, and which cloud companies might participate.
• Updates on the timeline for Intel’s Ohio campus construction and tooling milestones.
• Both companies’ upcoming quarterly earnings reports, where management commentary on U.S. manufacturing plans could provide clarity.
• Broader memory market dynamics, including AI-driven demand for server DRAM, that underpin the strategic logic of the proposed arrangement.

Source: original release