SK Hynix and Intel in Talks to Produce Apple Memory Chips in US

SK Hynix Weighs U.S. Memory Production at Intel’s Ohio Plant

Lease Proposals and Non-Binding Negotiations

Under the proposed arrangement being discussed between the two companies, SK Hynix would potentially lease a portion of the massive semiconductor manufacturing site that Intel is developing in Ohio. Neither company has finalized a binding contract yet. According to statements cited by Reuters, SK Hynix confirmed that no definitive agreement has been reached at this stage. Intel declined to comment directly on the ongoing discussions while affirming its commitment to advancing the development of the Ohio facility.

Strengthening Apple’s Domestic Supply Chain

Apple relies on SK Hynix for standard DRAM and NAND memory components used across its iPhone, iPad, and other hardware ecosystems. While Apple currently sources processors manufactured by TSMC at its facility in Arizona, those local operations are limited by advanced technology constraints that restrict bleeding-edge production. In contrast, memory chips like DRAM and NAND utilize standardized industry processes rather than the ultra-advanced lithography nodes required for modern application processors. Consequently, producing memory locally in the United States would allow Apple to further diversify its hardware supply chain away from heavy geographic concentration in Asia.

Financial Realities of Domestic Manufacturing

Significant financial and regulatory hurdles stand in the way of a finalized deal. According to Reuters, manufacturing semiconductors domestically in the United States incurs substantially higher expenses than operating in South Korea. These costs stem from elevated local wage structures, expensive construction outlays, and the absence of the dense, highly integrated semiconductor supply chains found in Asia.

South Korean Regulatory Oversight and National Core Technologies

Furthermore, potential regulatory friction looms from the South Korean government. The South Korean Ministry of Trade warned that any transaction involving advanced memory technologies—such as High Bandwidth Memory (HBM) or DRAM—could be subject to formal regulatory review under the country’s Industrial Technology Protection Act. While SK Hynix holds final discretion over its production choices, technologies classified as national core technologies require regulatory review before being transferred or deployed abroad.