Intel Stock Rises on Potential SK Hynix Partnership
Intel (INTC) shares rose nearly 5% following reports that the chipmaker is in talks with South Korean memory manufacturer SK Hynix (SKHY). According to Reuters, SK Hynix may lease part of Intel's Ohio manufacturing facility or form a joint agreement involving major cloud companies. This potential partnership could help Intel monetize its underutilized foundry capacity and bolster its position in the U.S. chip industry. However, any deal faces regulatory hurdles as South Korea considers memory technologies like HBM sensitive under national laws such as the Industrial Technology Protection Act. SK Hynix has stated that no decisions have been made yet but is exploring options to strengthen its business competitiveness. Intel's stock has surged over 170% this year due to strong demand for CPUs and AI chips, though it still faces challenges in turning around its loss-making foundry segment. The Trump administration’s push for domestic chip manufacturing aligns with these developments as TSMC invests heavily in the U.S. Intel's Ohio campus is expected to reach $100 billion in total investment by 2030 or 2031, and a partnership could accelerate returns on that capital.
Topics: chip manufacturing foundry business Intel SK Hynix U.S.-South Korea trade