Sources: SK Hynix is in talks with Intel to make memory chips in the US for the first time, but a deal could face opposition from Seoul; both stocks jump 4%
SK Hynix (000660.KS) is in talks with Intel (INTC.O) about a deal that would see the South Korean company manufacture memory chips …
The U.S. manufacturing talks are unconfirmed: SK Hynix's newsroom said no plans had been confirmed. That qualification matters because the report identifies Seoul opposition as a potential obstacle, while the immediate market response was a 4% rise in each company's shares.
First-order effects
SK Hynix and Intel gain a prospective route to pair the memory maker's production with Intel's U.S. manufacturing footprint, but no capacity, partnership, or operating commitment has been confirmed.
The report immediately lifted SK Hynix and Intel shares 4%, while SK Hynix's public response leaves customers without a confirmed change in supply availability.
Second-order effects
Customers already proposing investments for dedicated SK Hynix lines would have another potential supply-location option if the talks produce an agreement, increasing the importance of long-term capacity commitments.
Seoul's potential opposition makes the location of SK Hynix's incremental production a commercial and policy constraint, rather than a decision driven solely by Intel and SK Hynix.
Third-order effects
If memory suppliers increasingly tie capacity to specific large buyers and production geographies, the memory market shifts further from fungible spot supply toward contracted, location-sensitive capacity.
A successful U.S. arrangement would reinforce a broader split between where memory is designed, fabricated, and packaged; SK Hynix's Korean packaging build shows those stages need not move together.
The trend: AI-linked memory demand is pushing buyers and suppliers toward dedicated capacity arrangements, with manufacturing geography becoming part of the supply contract.
Not many people are paying attention, but what matters in the Hynix and Intel news is that Hynix and Intel could form a JV with hyperscalers hungry for memory supply. That's more important than the Hynix and Intel news itself.
SK Hynix eyeing Intel's Ohio fab for memory is politics as much as economics. Seoul + DC close a $350B onshoring package this week and $SKHY risks being targeted if it sits out. But the $INTC fab does not open until end of decade so a signing now says little about output later...
A scenario to consider for the Intel and Hynix JV If Hynix Intel JV built 4 600k sqft cleanrooms ($100B project) that would be $120B in revenue from DRAM (maybe NAND is also made, as there's no NAND production in the US which Lutnick might want). Let's assume a 60% gross margin …
$SKHY and $INTC are in talks to make memory chips in the U.S. for the first time. One option under discussion would have SK Hynix produce memory at Intel's Ohio fab as AI demand continues to tighten supply.
Bad misconception, not 2025 anymore. I don't see Intel leasing out Fab 27. JV is likely going to lead to Intel increasing CAPEX and lowering FCF in next few years. Intels CAPEX for logic biz is heading to $35-40B+ range in 2028. This JV is probably a $5-10B a year commitment in a…
I understand @jukan05 thinking, but I think the most likely outcome will be some form of SK hynix-Intel Ohio agreement first, which may later develop into a JV. At least, that is the scenario I personally give the most chance at the moment, rather than them forming a formal JV wi…
We view the report of a potential partnership between SK Hynix and Intel as highly credible. Through this alliance, SK Hynix can establish U.S.-based memory chip manufacturing capacity in a more efficient and cost-effective manner, swiftly aligning with “Made in USA
To many people/analyst think Hynix splitting Ohio is what this is (a 350k sqft mod with $6B in dram tooling is what Lutnick is after haha) High likely to see Intel use all of Fab 27, build it's pair Fab 37 for 14A Then Hynix could use the rear 2 spaces of Fab 47/Fab 57. Or more l…
My 2 thoughts on $SHKY and $INTC deal: Leasing this Ohio fab space or structuring a JV turns INTC heaviest capex drag into immediate FCF and shared balance-sheet risk. But more importantly, anchoring an external titan like SK Hynix provides the ultimate market validation that INT…
@KristinaParts Tool in is late 2028. U haven't been watching the construction pace As Dave said they are going as fast as possible. 2030 date is old before acceleration