INTC, SKHY Stocks Jump Overnight: Intel’s Delayed Ohio Megafab Could Make SK Hynix’s First US Memory Chips

• Intel’s first Ohio fab is now expected to begin operating in 2030 or 2031, years behind its original 2025 target.
• A deal could ease Intel’s financial strain and put part of its upcoming $100 billion Ohio campus to work.
• South Korea could review any transfer of advanced DRAM or HBM technology under its national technology-protection law.

Shares of Intel (INTC) and SK Hynix (SKHY) jumped overnight heading into Wednesday after a report said that the companies are discussing a deal that could bring SK Hynix memory-chip manufacturing to the U.S. for the first time.

Heading into Wednesday, INTC jumped 5% in overnight trading, while SKHY climbed 3%. 

Intel, SK Hynix Explore Ohio Memory Deal 

One possible arrangement would see SK Hynix lease part of Intel’s delayed Ohio manufacturing campus, Reuters reported, citing three people familiar with the talks. Another could involve a joint venture with Intel and major cloud companies seeking to secure memory supplies, two sources said.

SK Hynix is the world’s second-largest memory-chip manufacturer and the leading supplier of HBM used in AI accelerators. It is a key Nvidia supplier and has a multiyear agreement covering memory for the Vera Rubin platform. The firm told Reuters that it was “reviewing various measures, including establishing additional production bases, to strengthen the competitiveness of its memory business,” but added that “no matters have been determined at this stage.” 

SK Group Chairman Chey Tae-won said in July that customers and governments were pressing the company to increase supply. “I think we need to build a factory in the United States,” Chey said. “If possible, I believe we should build it.”

Ohio Deal Could Throw Intel A Lifeline 

Intel announced the Ohio campus in 2022, pledging at least $20 billion and outlining a potential investment of about $100 billion across as many as eight fabs. Production from the first two was initially targeted for 2025.

After repeated delays, Intel now expects to complete the first fab in 2030 and begin operating in 2030 or 2031. The second is expected to be completed in 2031 and start production in 2032.

A lease or joint venture could put part of the delayed campus to work and reduce pressure on Intel’s balance sheet. CEO Lip-Bu Tan has pledged “no more blank checks,” while the U.S. government owns 10% of Intel after converting $8.9 billion of unpaid CHIPS Act grants into shares last year.

South Korea’s Tech Rules Loom Over Talks 

South Korea considers advanced DRAM and HBM sensitive technologies. The country’s trade ministry told Reuters that a U.S. investment would generally be the company’s decision, but any transfer involving a “national core technology” would require review under the Industrial Technology Protection Act.

U.S. manufacturing would also cost significantly more because of higher labor and construction expenses and the semiconductor supply chain’s concentration in Asia, two sources reportedly said. Seoul is simultaneously pressing SK Hynix and Samsung Electronics to accelerate plans for four new memory fabs in southwestern South Korea as part of an 800 trillion won ($518 billion) investment.

SK Hynix Caught Between Washington And Seoul 

U.S. Commerce Secretary Howard Lutnick has threatened tariffs of up to 100% on South Korean and Taiwanese chipmakers that fail to increase American production. He said in July that he was discussing U.S. memory output with SK Hynix and Samsung.

The talks also overlap with South Korea’s $350 billion U.S. investment commitment in return for a 15% tariff ceiling. About $150 billion has been earmarked for shipbuilding, while the remaining $200 billion has yet to be allocated. Seoul wants to apparently use any SK Hynix investment as leverage in those negotiations, while Washington is pressing the company to commit quickly. 

Union Vote Eases Memory-Production Risk 

Separately, about 57% of SK Hynix union members approved a revised agreement under which profit-sharing bonuses will be split evenly between cash and shares, resolving a dispute that had threatened production.

The deal replaces a proposed 40%-cash, 60%-stock split rejected in August by just 25 votes. However, the wider framework allocating 10% of annual operating profit to workers is still unchanged.

How Do Retail Traders Feel About INTC And SKHY?

On Stocktwits, retail sentiment around INTC and SKHY was ‘bearish,’ with ‘normal’ message volume for INTC and ‘high’ volume for SKHY. 

Over the past year, INTC surged 292%, while SKHY gained 4% 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Cathie Wood Says Starship’s First Orbital Flight Could Make SpaceX’s $1.75 Trillion IPO Seem Like A ‘Deep Value Opportunity’ In Hindsight