SK Hynix in Talks With Intel to Make Memory Chips in the U.S.

South Korean memory chipmaker SK Hynix is in talks with Intel about a deal to manufacture memory chips on U.S. soil for the first time, Reuters reported, citing three people familiar with the discussions.

SK Hynix would either lease part of Intel’s long-planned Ohio fab, or form a joint venture with Intel and major cloud firms eager to secure memory supplies, according to Reuters.

A tie-up would mark a significant shift for SK Hynix, which has kept its most advanced production at home. The talks come as Washington presses Korean firms to build memory fabs in the U.S. Their new partnership would also expand SK Hynix’s U.S. footprint beyond the $4 billion advanced packaging plant it is already building in Indiana.

The discussions remain preliminary and face steep hurdles, from higher U.S. production costs to regulatory approval in Seoul, according to Reuters. Opposition from Seoul could be the biggest obstacle: any agreement to produce advanced memory could run into resistance from the South Korean government, which treats those technologies as sensitive, Reuters reported.