SK Hynix is in exploratory talks with Intel about manufacturing memory chips on U.S. soil for the first time, potentially leasing part of Intel’s long-planned Ohio facility. The agreement would be a major success for the Trump administration’s efforts to develop domestic chipmaking capabilities. The scenarios under discussion include those in which SK Hynix rents space at Intel’s Ohio One complex or enters into a joint venture with Intel and major cloud companies that are looking for secure memory chip supplies. Meanwhile, opposition from Seoul could be a big hurdle to any deal.
Intel’s Ohio One is a $20 billion chipmaking facility announced in 2022, but delayed from 2025 to 2030 and 2031. In particular, SK Hynix would produce memory chips, which could be DRAM, NAND flash or high-bandwidth memory (HBM) for AI processors, in the massive plant. The Ohio One partnership would ease the financial strain on Intel and help solve the critical memory chip shortage in the world, driven by investments in AI and data centers.
Other Projects
Energy is also becoming an aspect that needs to be addressed in the AI surge, an aspect that Hitachi aims to tackle. Hitachi Energy has announced plans to construct a $528 million transformer manufacturing facility in Gallman, Mississippi. The new plant will be more than double the size of Hitachi’s current Crystal Springs plant, which is 6.5 miles away. As a result, the Gallman transformer plant will generate over 700 jobs and boost US production of vital power grid components.
SK Hynix Ohio Deal Navigates Geopolitical Chip Competition
Washington and Seoul are putting pressure on SK Hynix on U.S. manufacturing commitments. In addition, the advanced memory technologies such as HBM are deemed sensitive by the South Korean government and are subject to export review under the Industrial Technology Protection Act. U.S. Commerce Secretary Howard Lutnick has threatened to impose up to 100% tariffs on South Korean companies if they do not increase U.S. production. The Ohio One deal is one way SK Hynix might meet the competing demands and increase U.S. capacity. Also, SK Hynix recently went public on the secondary market on the Nasdaq in July, and currently has just one chip packaging plant under construction in Indiana.
Ohio One Supports U.S. Semiconductor Self-Sufficiency Strategy
Intel’s $20 billion Ohio One complex is designed to give the company the ability to manufacture memory and logic chips at home, rather than relying on Asian supply chains. In particular, SK Hynix’s involvement would help speed up the timeline of Ohio One’s operations and provide an example of cooperation between allied semiconductors. The facility is designed to address critical national security concerns related to the resilience of the chip supply chain and the demands of AI infrastructure. In July, SK Hynix Chairman Chey Tae-won said the company is under “enormous pressure and lobbying” from customers and countries to increase production, noting the importance of U.S. manufacturing capacity.
Project Overview
- Project Name: Intel Ohio One / SK Hynix Partnership (proposed)
- Intel Ohio One Value: $20 Billion
- Location: Ohio, USA
- Primary Developer: Intel
- Secondary Partner: SK Hynix (in talks)
- Status: Exploratory discussions, no decisions finalized
Scope
- Intel Ohio One chipmaking complex
- Potential SK Hynix memory chip manufacturing
- DRAM, NAND flash, or HBM production options
- Partnership or lease arrangement structures
- Cloud company joint venture potential
Project Highlights
- $20 billion Intel Ohio One complex
- First SK Hynix U.S. memory chip manufacturing
- Addresses acute global memory chip shortage
- Supports Trump administration U.S. chipmaking push
- Potential multi-partner venture with cloud firms
Key Developments
- SK Hynix exploratory talks with Intel announced September 2026
- Intel shares surged 5.2% pre-market on announcement
- SK Hynix stock up 4.1% in Seoul trading
- Ohio One production delayed to 2030–2031
- Nasdaq secondary listing completed by SK Hynix July 2026
Key Challenges
- South Korean government opposition to sensitive tech export
- Geopolitical tensions over chip supply chain control
- Higher U.S. manufacturing costs vs. Asian production
- Washington-Seoul investment commitment negotiations ongoing
- Tariff threats from U.S. Commerce Secretary
Outlook
- Exploratory talks ongoing without finalized terms
- Potential lease or joint venture structures emerging
- Ohio One 2030–2031 production timeline
- U.S. memory chip supply diversification advancing
- Geopolitical chip making competition intensifying
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