Intel CEO Pat Gelsinger addresses the annual Computex trade show in Taipei, Taiwan, on June 2, 2026.
Tsai Hsin-han | Reuters
SK Hynix is reportedly in discussions with Intel about a potential manufacturing deal in the United States, a move that could mark the first time the South Korean memory giant produces its chips stateside. The news, initially reported by Reuters, sent shares of both semiconductor titans higher in premarket trading. Intel saw a notable uptick of 3.2%, while SK Hynix’s Nasdaq-listed stock climbed 2.6%.
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Intel and SK Hynix shares year-to-date.
According to the Reuters report, one potential scenario involves SK Hynix leasing a portion of Intel’s advanced chipmaking facility in Ohio. Another avenue being explored could see the formation of a joint venture, potentially including major cloud service providers alongside Intel and SK Hynix. The talks are described as preliminary, with no definitive decisions yet made.
The implications of such a partnership are significant. For Intel, securing SK Hynix as a foundry customer would be a major endorsement of its manufacturing capabilities, a cornerstone of CEO Pat Gelsinger’s strategy to revitalize the company’s foundry business. It also aligns with the broader U.S. government initiative to bolster domestic semiconductor production and reduce reliance on overseas supply chains.
SK Hynix, a leading global producer of High-Bandwidth Memory (HBM), plays a critical role in powering the current artificial intelligence revolution. HBM is a key component in the high-performance chips developed by AI leaders like Nvidia, and its increasing demand underscores the strategic importance of secure and diversified manufacturing. The company also produces other essential memory chips vital for AI applications.
However, the potential deal might encounter complexities. Reuters cited sources suggesting that the South Korean government could express reservations regarding the manufacturing of sensitive technologies like HBM on foreign soil.
SK Hynix has been a significant beneficiary of the AI boom. The insatiable demand for data center expansion and AI processing power has led to a surge in memory chip prices, translating into substantial profits for SK Hynix and its rivals, notably Samsung. SK Hynix’s stock performance has been remarkable, with its South Korea-listed shares soaring approximately 400% over the past year.
The company has articulated an ambitious expansion plan, announcing in June its intention to double its memory chip production capacity over the next five years. Chairman Chey Tae-won recently emphasized the “enormous” demand for HBM. SK Hynix is already making strides in its U.S. expansion, having recently broken ground on a $4 billion manufacturing facility in Indiana. CEO Kwak Noh-Jung stated that this facility is slated to become a “key HBM production base in America” by 2030, signaling a clear commitment to increasing its footprint in the United States.
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