Exploratory talks reported
Shares of Intel and SK Hynix rose on Wednesday after Reuters reported that the two companies have discussed building memory chip production in the United States for the first time. The talks are exploratory and no decisions have been made, according to people familiar with the matter. SK Hynix later said no plans have been confirmed and that it is still exploring options to strengthen its global competitiveness.
A deal would be a notable win for Intel, which has been trying to attract major customers to its foundry business, a centerpiece of CEO Lip-Bu Tan's strategy. It would also support U.S. government efforts to bring more semiconductor production onshore.
Memory is the bottleneck
The report lands in the middle of the sharpest memory shortage in years. The rush to build AI data centers has absorbed high-bandwidth memory (HBM) output, and suppliers say 2026 production is sold out. HBM now consumes roughly 23 percent of total DRAM wafer capacity, up from single digits two years ago.
Prices show the strain. Conventional DRAM contract prices rose about 93 percent to 98 percent quarter over quarter in the first quarter of 2026, lifting industry revenue 81 percent to $97 billion. A 36-gigabyte HBM3E module traded near $2,100 on the spot market in early September, against long-term agreement prices of $300 to $400. DDR5 spot prices have roughly quadrupled since September 2025.
Why Washington is watching
SK Hynix listed American depositary receipts on the Nasdaq in July and its South Korea-listed stock is up about 400 percent over the past year. It is building a $3.87 billion advanced packaging plant in Indiana and expanding its M15X fab in Cheongju, South Korea.
For Intel, a memory partnership would fill capacity that its own product lines do not need. For Washington, it would reduce reliance on fabs in South Korea and Taiwan at a moment when shipping lanes and supply chains are both under stress.
Analysts caution that exploratory talks often end without a deal, and the companies have not set a timetable.
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