SK Hynix, Intel Mull Memory Chip Making Deal in Ohio as US Pushes Semiconductor Production: Report

Editor’s note: The story has been updated to include a statement from SK Hynix. South Korean semiconductor giant SK Hynix Inc. (NASDAQ:SKHY) said it is exploring several options to “strengthen its global competitiveness,” but added that no plans or arrangements have been finalized. The response comes amid reports that the company is exploring a potential deal with Intel Corp. (NASDAQ:INTC) to manufacture memory chips at Intel’s planned Ohio facility, amid Washington’s efforst of urging companies to expand domestic production as AI demand surges. Shares of SK Hynix rose about 2.74% premarket on Wednesday, while Intel’s stock climbed around 2.96%. SK Hynix Eyes Ohio Chip Plant SK Hynix is in exploratory discussions with Intel about potentially producing memory chips in Ohio, Reuters reported on Wednesday, citing three people with knowledge of the matter. Under one scenario, SK Hynix could lease part of Intel’s planned facility. Another option involves a joint venture with Intel and major cloud companies seeking to secure memory supplies. SK Hynix clarified in a press release that “nothing has been finalized regarding cooperation with any specific companies” mentioned in the news report or “memory chip production” in the U.S. The company noted that no decisions have been taken regarding “the two scenarios” mentioned in the news report. Intel declined to comment to Reuters on what it called speculation but said it continues to invest in preparing its Ohio site. Intel did not immediately respond to Benzinga’s request for comment. South Korea Could Review Deal SK Hynix makes dynamic random-access memory (DRAM) and NAND flash memory and is a leading supplier of high-bandwidth memory, or HBM, used in AI processors. The company’s U.S. expansion could face scrutiny from Seoul if it involves sensitive technologies, according to the report. South Korea’s trade ministry said production involving "national core technology" would be subject to review under the Industrial Technology Protection Act. Read Also: SK Hynix Still Owns a Piece of Japan's Hottest AI Stock After Bain's Exit SK hynix Denied Ohio Acquisition Plans In July, SK hynix denied plans to acquire Intel’s Ohio semiconductor campus, saying it "has not pursued or decided to acquire Intel’s Ohio site and Fab" and that it had "no plans for an acquisition." Intel said it remained "committed to Ohio" and continued investing in the site, whose operations had been pushed to 2030-31. In June, Intel appointed former SK Hynix and SK On CEO Seok-Hee Lee as executive vice president of its contract chip-manufacturing business, overseeing advanced packaging and back-end manufacturing. The Benzinga Edge Stock Rankings showed a significant shift in SK hynix’s price structure, with its short-, medium- and long-term trends all turning positive, according to the latest data. Price Action: SK hynix closed at $174.83, down 0.46% on Tuesday. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Read Also: Intel Delays $28 Billion Ohio Chip Plant Again, Pushing Opening to 2030 Amid Financial Struggles Photo courtesy: JHVEPhoto / Shutterstock