- SK Hynix is in exploratory talks with Intel to make memory chips in the US for the first time. Reported structures include leasing part of Intel's Ohio chipmaking facility or forming a joint venture with Intel and major cloud companies seeking memory supply.
- Intel shares rose roughly 4.5% to about $101.50 and SK Hynix's Nasdaq-listed ADRs rose 2.6% on the report, as traders treated the arrangement as a foundry and packaging catalyst that would put paying volume on Intel's underused Ohio tools.
- South Korea's government is the main obstacle: HBM and DRAM are treated as national core technology, and any transfer is reviewed under the country's Industrial Technology Protection Act. SK Hynix said no matters have been determined.
- Intel CEO Lip-Bu Tan said Intel can meet only about 50% of customer demand for CPUs, with rising memory prices and tight advanced packaging substrates tightening supply and supporting pricing power.
- A deal would monetize Intel's Ohio campus, which has land for up to eight fabs and construction scheduled to finish in 2030-2031. Intel's foundry business lost $2.1 billion in Q2 and had signed only one major external customer, Fortinet, in July.
Quotes
“reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business”
“about 50% of customer demand for CPUs”
“enormous”