SEOUL, South Korea: SK Hynix is exploring ways to manufacture memory chips in the United States for the first time through a potential agreement with Intel, according to three people familiar with the discussions.

One option under consideration would involve SK Hynix leasing part of Intel's long-planned chipmaking facility in Ohio, the people said. Another could see SK Hynix form a venture with Intel and major cloud companies seeking to secure supplies of memory chips, according to two people.

The discussions remain exploratory, and no decisions have been made, one of the sources said, adding that SK Hynix could consider other ways of structuring an agreement.

Potential opposition from South Korea could pose a major hurdle, the sources said.

Intel shares rose 5.5 percent at the open September 16, while SK Hynix shares finished 4.1 percent higher in Seoul.

It remains unclear what types of chips SK Hynix could manufacture in Ohio if an agreement is reached. Its products include DRAM chips used in servers, PCs, and smartphones; NAND flash memory chips used for long-term storage; and high-bandwidth memory (HBM) used in AI processing units.

Any agreement involving the production of advanced memory, such as HBM or even DRAM, could face opposition from the South Korean government because these technologies are considered sensitive, the three sources said.

SK Hynix said it is "reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business," but "no matters have been determined at this stage."

The company later said on its website that nothing had been finalized regarding cooperation with any of the specific companies mentioned in the report or regarding memory chip production in the United States.

Intel declined to comment on what it called "speculation" but said it was continuing investments in Ohio to prepare the site.

South Korea's trade ministry said any decision on producing chips in the United States would be at SK Hynix's discretion, but an investment involving a "national core technology" would be reviewed under the Industrial Technology Protection Act.

The U.S. Commerce Department did not respond to a request for comment.

Manufacturing semiconductors in the United States costs significantly more than in South Korea due to higher labor and construction costs, according to two sources. One also said the concentration of much of the semiconductor supply chain in Asia adds to U.S. costs.

SK Hynix completed a secondary listing on Nasdaq in July and currently has only a chip-packaging facility under construction in Indiana.

SK Group Chairman Chey Tae-won said in July that SK Hynix was facing significant 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.

An agreement could also ease financial pressure on Intel, which is partly owned by the U.S. government. Intel announced in 2022 that it planned to invest up to US$100 billion to build what could become the world's largest chipmaking complex in Ohio, with production initially scheduled for 2025. Completion of its two plants has since been delayed until 2030 and 2031.

SK Hynix and Samsung Electronics have meanwhile been urged by Seoul to accelerate plans for a new chipmaking cluster in southwestern South Korea.

U.S. Commerce Secretary Howard Lutnick has threatened tariffs of up to 100 percent on South Korean and Taiwanese companies unless they commit to increased production in the United States.

The United States and South Korea have also been negotiating over a major investment commitment South Korea made last year in exchange for lower U.S. tariffs. About $150 billion of the proposed $350 billion has been earmarked for shipbuilding, while the remaining $200 billion remains undecided.

Two sources said the situation has put SK Hynix in a difficult position, with Seoul seeking to use any U.S. investment by the company as leverage in the talks while Washington pressures the chipmaker to quickly commit to expanding in the United States.