Intel Corp (NASDAQ:INTC) shares are jumping Wednesday. A new report stated that SK Hynix is in talks with the company about manufacturing memory chips in the U.S. for the first time, potentially through a lease or joint venture tied to Intel’s Ohio facility.

SK Hynix in Talks to Manufacture Chips at Intel’s Ohio Site

Reuters reported that SK Hynix Inc (NASDAQ:SKHY) and Intel are exploring a deal that would put the South Korean chipmaker’s memory production on U.S. soil for the first time, either through SK Hynix leasing space at Intel’s Ohio complex or through a joint venture involving cloud computing firms seeking to secure their own memory supply.

A deal would give partially government-owned Intel a lifeline and hand the Trump administration a win in its push to bring chip production back to the U.S. amid an AI-driven memory shortage. A source reportedly cautioned the talks remain early and exploratory.

Any Deal Could Face Pushback From Seoul

Because advanced memory technologies like HBM and DRAM are considered sensitive, any U.S. production could face resistance from South Korean regulators. SK Hynix has since pushed back more directly on the report, denying that anything concrete has been settled regarding the reported talks with Intel over U.S.-based chip manufacturing. The company said it continues to look at different avenues for staying competitive on a global scale, while stressing that “no specific plans or arrangements have been finalized.”

Higher Costs, But Real Incentives to Build in U.S.

Building chip plants in the U.S. costs more than in South Korea given higher labor and construction expenses. Even so, SK Group chairman Chey Tae-won said in July that mounting pressure from customers and governments makes building a U.S. plant something the company likely needs to do. A deal would help Intel, which unveiled a roughly $100 billion Ohio investment plan in 2022 that has since faced delays.

INTC Shares Are Climbing

INTC Price Action: Intel shares were up 4.33% at $101.35 at the time of publication on Wednesday, according to Benzinga Pro.

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