Intel Shares Climb on Report of Talks With SK Hynix Over U.S. Memory Production

Intel shares rose 4.72% to $95.80 in Wednesday trading, as investors digested a Reuters report that the semiconductor giant is in discussions with SK hynix about a partnership that could bring memory chip manufacturing to the United States.

According to the report, SK hynix is weighing a lease arrangement for part of Intel’s Ohio manufacturing campus, a project carrying a $28 billion price tag. An alternative structure under consideration would have SK hynix establish supply agreements with Intel and major cloud providers that need memory chips for their data centers.

SK hynix, one of the world’s largest memory producers, supplies advanced high-bandwidth memory (HBM) — a critical component in AI accelerators that has been in short supply amid the surge in demand for AI infrastructure. The South Korean company’s shares gained 8.84% on the day, closing at $177.00.

A deal would carry strategic significance for Intel as it works to build out its contract manufacturing business, which could gain a marquee tenant and steady revenue for its U.S. facilities. For SK hynix, domestic U.S. production would add a geographic hedge to its memory supply chain at a time when AI-related demand continues to strain capacity.

Neither company’s stock move appeared tied to a confirmed agreement; the report described the discussions as preliminary, with multiple structures still on the table.

What to watch

• Confirmation or denial of the talks from Intel or SK hynix, including details on which structure — the Ohio lease or a supply pact — is pursued.
• Intel’s upcoming earnings report for updates on foundry customers and progress at its Ohio site.
• Any announcements from cloud providers regarding memory supply agreements.
• Broader developments in U.S.-based semiconductor manufacturing partnerships as AI demand shapes memory sourcing.

Source: original release