South Korean giant considers leasing Ohio facility to boost local supplies amid geopolitical pressure and global AI shortages.
South Korean memory maker SK Hynix is in exploratory discussions with Intel regarding a deal that could see it manufacture semiconductors on US soil for the first time.
According to sources familiar with the matter, potential structures under consideration include SK Hynix leasing part of Intel’s long-delayed chipmaking complex in Ohio, or forming a joint venture alongside Intel and major cloud providers eager to secure memory chip supplies. A deal would provide welcome financial relief for Intel whilst delivering a key policy win for the Trump administration, which has intensified pressure on foreign tech firms to expand US manufacturing as relentless investment in artificial intelligence and data infrastructure fuels a severe global shortage of memory components.
However, significant hurdles remain, particularly regarding potential geopolitical resistance from Seoul. The South Korean government considers advanced semiconductor innovations—such as High-Bandwidth Memory (HBM) and DRAM—to be “national core technology.” Consequently, any transfer of production capabilities could face strict regulatory reviews or political opposition from South Korean trade authorities.
Furthermore, manufacturing in the United States entails substantially higher construction, labor, and supply chain expenses compared to established Asian hubs. These economic realities are further complicated by delicate trade dynamics, as Washington’s threat of tariffs on South Korean electronics has placed SK Hynix directly between the competing demands of the US Commerce Department and officials in Seoul.
SK Hynix—which currently produces all its wafers in Asia and only has an advanced packaging plant under construction in Indiana—acknowledged it is reviewing measures to boost competitiveness, but stated no decisions have been finalized. Intel declined to comment on speculation, affirming only that it remains committed to developing the Ohio site, where initial production has been pushed back to 2030–2031.
