● Covered by 2 sources · 2 reportsMedium impact2 neutral
SK hynix Discusses US Memory Chip Manufacturing with Intel, Considering Ohio Plant
Key points
- SK hynix is discussing US memory chip manufacturing with Intel.
- Options include leasing space at Intel's Ohio One site or a joint venture.
- The move could alleviate memory shortages and supply Apple devices.
- South Korean government may oppose due to domestic investment plans.
- This complements SK hynix's HBM packaging plant in Indiana.
Potential US Manufacturing for SK hynix
South Korean memory chip manufacturer SK hynix is reportedly in discussions with Intel regarding the establishment of memory chip manufacturing operations within the United States. This development follows SK Group chairperson Chey Tae-won's statement in July about the need to build a factory in the US.
The discussions are exploring several options, including SK hynix leasing space at Intel's under-construction Ohio One site. Another possibility is the formation of a joint venture involving Intel and other AI hyperscalers who require High Bandwidth Memory (HBM).
Addressing Memory Shortages and Supply Chain Diversification
This potential move by SK hynix could help alleviate current memory shortages in the market. It would also complement the company's ongoing expansion in Indiana, where it recently broke ground on an HBM packaging plant.
For Apple, a key customer of SK hynix, this could mark the first time memory chips for its devices are manufactured in the US. SK hynix supplies both RAM and flash memory chips for Apple products.
Government Concerns and Domestic Investment
Despite the potential benefits, there are concerns that the South Korean government might object to such an investment. Seoul recently unveiled a $520 billion investment plan aimed at increasing domestic chipmaking capacity to maintain the country's competitiveness in the AI sector.
The South Korean government's potential opposition mirrors concerns previously seen with Taiwan regarding the export of chipmaking technology.
Context of US Chip Production
While some processors for Apple devices are already made in the US, these are typically older devices due to restrictions on foreign access to TSMC's most advanced processes. However, for DRAM and NAND flash memory chips, which Apple uses in industry-standard versions, such restrictions would not be an issue.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
SK Hynix, an Apple memory supplier, is in discussions with Intel to potentially manufacture memory chips for Apple devices at Intel's planned Ohio facility. This development could mark the first time memory chips for Apple are produced in the US, diversifying Apple's supply chain.
SK hynix is reportedly in talks with Intel to establish memory chip manufacturing in the U.S., considering options like leasing space at Intel's Ohio One site or forming a joint venture. This move could help address memory shortages and complements SK hynix's existing HBM packaging plant expansion in Indiana.