SK hynix considers memory chip production in the US — Korea Herald

South Korea’s SK hynix is considering the possibility of establishing part of its memory chip production in the United States, but has not yet made a final decision. Among the options reported by Reuters are leasing part of Intel’s complex in Ohio to produce memory or creating a joint venture with Intel and major cloud companies.

As Korea Herald reports, Reuters wrote on September 16 that the company is discussing these possibilities amid demand from major customers for reliable memory supplies. SK hynix said it is exploring various ways to strengthen its global competitiveness but has not yet approved specific plans or agreements.

Facility in Indiana

SK hynix is already building a facility worth more than $4 billion in West Lafayette, Indiana. From the second half of 2029, it is expected to receive advanced DRAM wafers made in South Korea, package them, and turn them into high-bandwidth memory, or HBM. Production of the chips themselves will remain in South Korea at this stage.

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The Indiana project received up to $458 million in federal funding under the CHIPS program. The company also explained its choice of the United States by its proximity to major customers, research opportunities, and partners in artificial intelligence.

Main investments are in South Korea

Producing silicon wafers in the United States would cost more, according to Reuters, because of higher construction and labor costs. At the same time, subsidies, proposed US tariff policy, and potential long-term order guarantees from cloud companies could affect the economic viability of such investments.

SK hynix continues a large-scale expansion of production at home. In August, the company approved 35.2 trillion won for a second DRAM plant in Yongin and 19.1 trillion won for a NAND facility in Cheongju, totaling 54.3 trillion won. Intel began building two plants in Ohio in 2022, but the launch of the first one is now expected in 2030 or 2031.