Intel and SK Hynix Discuss Historic Partnership to Produce Memory Chips in the United States
Columbus, Wednesday, 16 September 2026.
South Korea’s SK Hynix is negotiating a landmark partnership to manufacture memory chips at Intel’s Ohio facility, driven by growing AI demand and threats of 100% U.S. tariffs.
Intel and SK Hynix Discuss Historic Partnership
On Wednesday, 16 September 2026, reports emerged that SK Hynix is in exploratory talks with Intel Corporation to manufacture memory chips in the United States for the first time [2][5]. The potential partnership would utilize capacity at Intel’s megafab facility in Ohio, marking a significant shift in the semiconductor supply chain landscape [2]. This development represents a critical customer win for Intel’s foundry division while expanding SK Hynix’s global production footprint [1].
Market Reaction to Semiconductor News
Following the reports, shares for both semiconductor companies saw immediate gains in overnight trading [1]. Intel Corporation (NASDAQ: INTC) shares rose by 5.2% in pre-market trading, while SK Hynix’s stock increased by 4.1% in Seoul on the same date [2]. The market response highlights investor confidence in the strategic alignment between the two technology giants [4].
Strategic Implications for Intel and SK Hynix
This deal could be a major win for Intel, which has been seeking marquee customers for its struggling foundry division [1]. For SK Hynix, expanding production to the U.S. mitigates supply chain risks and aligns with CEO Chey Tae-won’s statement in July 2026 regarding the need to build factories in the United States [3][5]. The collaboration aims to address the enormous demand for high-bandwidth memory (HBM) driven by AI applications [2].
Ohio Facility and Investment Details
Intel announced in 2022 an investment of up to $100 billion for a chipmaking complex in Ohio, though completion of the two plants has been delayed to 2030 and 2031 [2]. SK Hynix is exploring options to lease part of this facility or form a joint venture involving Intel and major cloud firms [2][5]. Current negotiations focus on leveraging this existing infrastructure to accelerate production timelines [5].
Regulatory and Geopolitical Hurdles
Any production of sensitive technologies, such as High-Bandwidth Memory (HBM), would be subject to a government review under South Korea’s Industrial Technology Protection Act [2]. The South Korean trade ministry stated that any decision involving national core technology would require this review, adding a layer of complexity to the negotiations [2][5]. This regulatory oversight ensures national security interests are protected during technology transfers [5].
Tariff Pressures and Global Context
Additionally, U.S. Commerce Secretary Howard Lutnick has threatened tariffs of up to 100% on South Korean and Taiwanese companies unless they increase U.S. production [3]. This pressure from Washington complicates SK Hynix’s position as it balances domestic pressures to prioritize a new chipmaking cluster in southwestern South Korea [5]. The geopolitical landscape remains a key factor in finalizing any cross-border manufacturing agreements [3].
Future Outlook and Timeline
As of 16 September 2026, no decisions have been finalized regarding the partnership [2]. SK Hynix stated it is reviewing various measures to strengthen competitiveness, but confirmed that no matters have been determined at this stage [2][5]. Stakeholders will continue to monitor regulatory approvals and investment commitments in the coming months [5].