Intel shares were a big performer in the yesterday's session on the Nasdaq, driven by rumours about a possible collaboration with Korean giant SK Hynix to produce memory chips in the United States. The stock gained 10%, after the increase already recorded the previous day and closed with a gain of 7,6%. At the heart of the story is above all the Intel's major industrial project in Ohio, an investment of tens of billions of dollars that has accumulated delays in recent years and represents one of the group's main financial and industrial challenges.
The hypothesis of a memory factory in Ohio
According to Reuters, Sk Hynix and Intel are in exploratory discussions to evaluate the production of memory chips in the United States. One option would be to allow the Korean group to lease part of the Intel plant in Ohio. Another option would instead include a joint venture between Sk Hynix, Intel and major cloud companies interested in securing memory supplies.
It has not yet been established what kind of memory could be produced in the factories. SK Hynix is one of the world's leading producers of DRAM and NAND and is also a leader in HBM memory, a key component for artificial intelligence systems. The news is particularly significant because Intel's project in Ohio was designed to become one of the largest semiconductor manufacturing complexes in the world. The investment, announced in 2022 with a potential value of up to $100 billion, was initially supposed to come online in 2025. However, the timing has slipped and The two plants are now scheduled to start operating in 2030 and 2031.
SK Hynix slows down: no agreement reached
Caution is key. SK Hynix confirmed it is evaluating several options to strengthen its production capacity, but denied that an agreement with Intel already exists. In a statement reported by Reuters, the South Korean company said: "We are examining several measures, including the establishment of additional production bases, to strengthen the competitiveness of our memory business, but At this stage nothing has been decided".
Subsequently, SK Hynix posted a clarification on its website: “Nothing has been finalized regarding collaboration with specific companies mentioned in the report or the production of memory chips in the United States.” Intel has also chosen a cautious lineThe company called the news speculation and did not comment on a potential deal, only reiterating that it continues to invest in preparing the Ohio site.
Why the market reacted so positively
The market is evidently looking beyond the potential immediate revenue from a partnership. An agreement between Intel and SK Hynix could, in fact, provide a concrete use for part of the enormous production capacity planned in Ohio and, at the same time, help reduce financial pressure on Intel.
For the Koreans, however, production in the United States It would allow us to get closer to American customers and to increase its presence in the artificial intelligence supply chain. Demand for memory, especially for AI systems, has grown rapidly, and major cloud operators are struggling to secure sufficient supplies. SK Group Chairman Chey Tae-won had already explained in July the pressure from customers and governments to increase production in the United States: "I think we need to build a factory in the United States. If possible, I think we should do it."
The geopolitical and technological knot
The road to an agreement, however, is not without obstacles. South Korea could subject the deal to scrutiny if it involves technologies deemed strategic. Reuters reports in particular that the production of advanced DRAMs, or HBMs, in the United States could be subject to controls under South Korea's Industrial Technology Protection Act. Then there's the issue of costs. Producing semiconductors in the United States is generally more expensive compared to South Korea, both due to the cost of labor and construction and because much of the sector's supply chain is concentrated in Asia.
Scenarios for Intel
For Intel, the potential partnership would have at least three potential consequences. The first would be financial: an industrial partner could help utilize otherwise underutilized infrastructure and reduce some of the investment burden in Ohio. The second would be strategic: the arrival of SK Hynix would further connect Intel to the growing demand for artificial intelligence infrastructureThe third would concern the Ohio factory itself, which could take on a more complex role in the American semiconductor supply chain.
At the moment, however, these are scenarios and not a concluded agreement. Intel's rise therefore reflects above all market expectations on the potential implications of the partnership, while the industrial, financial, and technological details remain to be finalized. For now, the most important fact is this: negotiations are ongoing, according to sources cited by Reuters, but SK Hynix has officially clarified that no decision has been made.
