Intel and SK Hynix discuss memory chip production in the US
Intel and South Korea’s SK Hynix are holding preliminary talks on producing memory chips in the United States. As CNBC Top News reports, citing Reuters, one possible option is for SK Hynix to lease part of Intel’s manufacturing facility in Ohio.
Possible formats of cooperation
According to Reuters, the companies are also considering creating a joint venture involving Intel and major cloud companies. At the same time, SK Hynix may choose another structure for the arrangements.
The talks are exploratory in nature, and the parties have not yet made final decisions, one Reuters source said. Intel and SK Hynix did not respond to CNBC’s request for comment on the information.
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Market reaction and significance of the deal
Following the report, Intel shares rose by about 5% in premarket trading, while SK Hynix’s American depositary receipts traded on Nasdaq gained about 3%.
If concluded, the deal could become an important contract for Intel’s chip contract manufacturing business. This business is one of the key elements of the strategy of the company’s CEO, Lip-Bu Tan. Such cooperation could also support the US government’s efforts to expand semiconductor production in the country.
SK Hynix is one of the world’s leading suppliers of high-bandwidth memory, or HBM, which is used, among other things, in Nvidia chips. The company also produces other types of memory chips needed for artificial intelligence applications. According to Reuters, citing three sources, a deal to manufacture advanced memory, including HBM, could draw objections from the South Korean government, as these technologies are considered sensitive.
