Intel and SK Hynix Hold Early Talks Over Using Ohio Fab for Memory Production

Overview

• Reuters reported Wednesday that Intel and South Korea’s SK Hynix are in early, exploratory talks about using space at Intel’s Ohio semiconductor site for memory chip production.
• Options under discussion include SK Hynix leasing part of the Ohio facility or forming a joint venture that could involve major cloud-service customers seeking to secure memory supply.
• Markets moved on the news with Intel shares rising about 3% in premarket trading and SK Hynix American depositary receipts also gaining.
• Significant obstacles remain: talks are preliminary with no company comment, potential South Korean government review could block sensitive technology moves, and SK Hynix faces pressure to fund a large share buyback while financing costly fabs.
• The potential deal would give Intel a path back into memory chips and create SK Hynix’s first U.S. memory production site, a development that ties to U.S. policy goals and to an industry-wide memory shortage that analysts expect to last through 2027.