Reports that Intel and SK hynix are in discussions for a potential partnership to manufacture memory chips at Intel’s Ohio campus have sent shares of both companies higher. Intel shares rose approximately 4%, while SK hynix gained around 3% on Wednesday, September 16.
The potential deal would see SK hynix produce chips at Intel’s $100 billion Ohio site, though no agreement has been signed yet. The talks come at a time when AI companies are increasingly demanding high-bandwidth memory chips for servers and data centers. SK hynix is a leading supplier of such memory, widely used in AI systems.
Intel has faced delays at its Ohio project, originally expected to begin production in 2025. A partnership with SK hynix could provide a new purpose for the site while expanding memory chip production in the United States.
SK hynix already has a chip packaging plant under construction in Indiana, but it does not yet manufacture memory chips in the U.S. Moving some production to Ohio would help the company establish a larger footprint in the country.
Ohio’s Role in the AI Chip Race
The possible collaboration could benefit both companies. Intel could repurpose its delayed Ohio facility, while SK hynix would gain another location for memory production closer to U.S. customers.
The timing is crucial as the AI race intensifies, with companies demanding powerful chips for advanced AI systems. Increasing local production could help meet this demand over time.
However, the talks remain at an early stage, and any deal could face cost and technology hurdles. South Korea may also review an agreement involving advanced memory technology. If the plan moves forward, Intel’s Ohio site could play a new role in the growing U.S. AI chip supply chain.