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[Reuters] SK Hynix in talks with Intel about deal to make memory chips in US

M

Marees

Supreme [H]ardness
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  • SK Hynix might lease part of Intel's facility in Ohio, sources say
  • Or SK Hynix might form a venture with Intel and cloud firms, sources say
  • A deal would be a big win for the Trump administration
  • But unclear if the South Korean government would approve a deal

https://www.reuters.com/world/asia-...-09-16/?utm_medium=Social&utm_source=Facebook

By Heekyong Yang, Alexandra Alper and Hyunjoo Jin
September 16, 202611:02 AM GMT+5:30Updated 12 hours ago

erek said:

“Intel and SK hynix Could Start DRAM Production in United States​

by AleksandarK Today, 06:59 Discuss (1 Comment)
According to anonymous sources close to Reuters, Intel and SK hynix are in talks to start DRAM production lines in the United States for the first time. This means that Intel might either collaborate with SK hynix to acquire memory IP technology in a joint venture or SK hynix could lease part of Intel's facility in Ohio. In the first scenario, a joint venture between Intel and SK hynix would significantly alleviate supply chain pressures, as hyperscalers, fabless chip designers, and others are in urgent need of more DRAM. Since these firms would likely consume all the DRAM produced in the coming years, both Intel and SK hynix would have a substantial financial interest in the joint venture.

On the other hand, if SK hynix decides to lease Intel's facilities in Ohio, the South Korean memory giant would pay premiums for leasing the facility while retaining all production for itself. Reuters couldn't determine which specific technology would be the focus of the facility, but the primary goal is to produce regular planar DRAM, HBM, and some storage solutions with NAND Flash. Intel declined to comment on the rumor but noted that the Ohio investments are continuing regardless. SK hynix stated that the company has not finalized its decision or any cooperation but did not explicitly rule out the possibility of future collaboration. Therefore, an official decision should be announced soon.“
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Under one potential scenario, SK Hynix would lease part of Intel's ‌long-planned chipmaking facility in Ohio, they said.

Under another scenario, it could form a venture with Intel and major cloud firms that are keen to lock in memory chip supplies, two of the people said.

One of the sources described the talks as exploratory and stressed that no decisions have been made, adding that SK Hynix might also consider other ways to structure the deal.

Reuters was, however, not able to learn what types of chips SK Hynix may manufacture in Ohio if an agreement is struck.
Its product lineup includes DRAM (dynamic random-access memory) chips used in servers, PCs and smartphones and NAND flash memory chips that provide long-term storage memory. It is also the leading supplier of high-bandwidth memory (HBM) used in AI processing units.
 
Asked about a potential SK Hynix plan to produce chips in the U.S., South Korea's trade ministry said any decision would be at the company's discretion but if it involved a "national core technology," it would ‌be subject to ⁠a review under the Industrial Technology Protection Act.

Both countries have also been wrangling over the execution of ⁠a huge investment commitment that South Korea made to the U.S. last year in return for lower U.S. tariffs. Some $150 billion of a proposed $350 billion has been earmarked for shipbuilding but the remaining $200 billion is undecided.

Two of the sources said this has left SK Hynix in a difficult position, with the South Korean government seeking to use any U.S. investment by SK Hynix as leverage in the talks, and Washington heaping pressure on the firm to quickly commit to a U.S. expansion.
 
SK Hynix, which recently completed a secondary listing on the Nasdaq in July and currently only has a chip packaging facility under construction in Indiana, has good reasons to pursue fabricating chips in the United States.

Chey Tae-won, chairman of the SK Group conglomerate that SK Hynix is part of, said in July that the company faces ⁠enormous pressure and lobbying from customers and countries to supply more chips.

"I think we need to build a factory in the United States. If possible, I believe we should build it," he told reporters.

A deal with SK Hynix would also ease some of the financial strain on Intel, which is part-owned by the U.S. government.
Intel announced in 2022 that it would invest up to $100 billion to build potentially the world's largest chipmaking complex in Ohio, with production scheduled to begin in 2025. But completion of the site's two plants ⁠has since been delayed to 2030 and 2031.
 
philb2 said:
Why not? Do you have a direct phone line to ???
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Some times you just know man. I bet none of this shit happen either. Gov. can't get out of anyone way and even if it did it would be so many years from now it won't even matter. Any thing that would benefit the citizen is never done.
 
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