SK Hynix may move part of its production to an Intel plant in the U.S. Why would the companies do this?

South Korean chipmaker SK Hynix is in talks with U.S. company Intel to set up chip production in the United States for the first time in its history, Reuters reports, citing sources. Amid this news, shares of both companies rose in premarket trading on September 16: Intel shares gained 3.7%, while SK Hynix’s American Depositary Receipts (ADRs), traded on the Nasdaq, rose 3%.

According to sources who spoke with Reuters, SK Hynix is considering several scenarios for launching production in the U.S. Under one scenario, the South Korean chipmaker could lease part of Intel’s plant in Ohio. Another option involves establishing a joint venture with major cloud companies interested in guaranteed memory supplies. Negotiations are still in the preliminary stages, and SK Hynix itself is exploring other ways to structure the deal, says one of Reuters’ sources.

SK Hynix, commenting on this report, stated that “no final agreements have yet been reached regarding cooperation with the specific companies mentioned in the [Reuters] article or regarding the production of memory chips in the United States.” “SK Hynix is exploring various options to strengthen its global competitiveness, but no specific plans or agreements have been finalized at this time,” the company emphasized.

Three sources told Reuters that an agreement to manufacture advanced memory chips in the United States could face opposition from the South Korean government; they explained that such technologies are considered sensitive.

Intel representatives did not immediately respond to a request for comment from Reuters.

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