SK Hynix is reportedly in negotiations with Intel regarding the production of memory semiconductors in the United States.
According to Reuters on September 16, discussions are underway about SK Hynix leasing part of Intel's semiconductor manufacturing facility currently under construction in Ohio, or establishing a joint venture with Intel and major cloud companies.
However, the negotiations are still in the early stages, and no concrete decisions have been made. Sources indicate that SK Hynix is also considering other forms of collaboration.
The potential partnership between SK Hynix and Intel arises amid a growing shortage of memory semiconductors, driven by surging investments in artificial intelligence (AI) and data centers. With the U.S. government pressuring semiconductor companies to expand domestic production, a finalized agreement could represent a significant achievement for the Trump administration's push for increased semiconductor manufacturing in the U.S.
Nonetheless, the review process by the South Korean government is seen as a variable. In particular, technologies classified as national core technologies, such as high-bandwidth memory (HBM) and DRAM, would require scrutiny under the Industrial Technology Protection Act if transferred to the U.S. or produced locally. Sources suggest that the South Korean government may not rule out the possibility of opposing such moves.
In response to Reuters' inquiry, SK Hynix stated, "We are exploring various options, including the establishment of additional production facilities, to enhance our competitiveness in the memory business," but emphasized that no decisions have been made at this stage.
Despite high labor and construction costs, along with a significant portion of the semiconductor supply chain concentrated in Asia, the pressure from customers and governments for increased production in the U.S. is prompting SK Hynix to consider domestic manufacturing.
Chey Tae-won, chairman of SK Group, noted in July that the pressure and lobbying from customers and governments for more semiconductor supply is "immense," stating, "I believe we need to build a factory in the U.S. If possible, it would be better to do so."
Currently, the only semiconductor-related investment SK Hynix is pursuing in the U.S. is a $4 billion AI semiconductor packaging plant under construction in Indiana. This would mark the first instance of building a full semiconductor manufacturing facility in the U.S.
However, meeting the demands of both the U.S. and South Korea simultaneously poses challenges. U.S. Secretary of Commerce Gina Raimondo has pressured South Korean and Taiwanese semiconductor companies to expand production in the U.S., warning of potential tariffs of up to 100% if they do not comply. Conversely, the South Korean government is urging SK Hynix and Samsung Electronics to expedite the establishment of semiconductor production clusters domestically.
Reuters reports that while the South Korean government aims to leverage SK Hynix's U.S. investment in negotiations with the U.S., the U.S. government is pressuring SK Hynix for rapid expansion of production in the U.S., placing the company in a difficult position.
* This article has been translated by AI.
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