Intel Stock Rises as SK Hynix Considers U.S.-Based Memory-Chip Collaboration
Intel (INTC) shares rose nearly 6% after reports surfaced that South Korean memory chipmaker SK Hynix (SKHY) is in exploratory talks with Intel to produce memory chips at the latter's Ohio manufacturing site. The potential collaboration could involve either a lease of part of the facility or a joint venture, possibly including major cloud companies seeking secure future supply chains for memory components. Intel has been working to expand its foundry business beyond internal use and is currently facing challenges in attracting external customers while managing production costs. Recent financial data shows that Intel Foundry's second-quarter revenue was $5.77 billion, with only a small portion coming from outside clients. The company also reported an operating loss of $2.09 billion for the quarter. Bank of America analysts highlighted growing concerns around AI memory constraints and expect tighter supply conditions by 2027. Intel has already experienced shortages in its own operations due to internal manufacturing limitations, with these issues expected to persist into next year.
Topics: Intel manufacturing partnership memory chips SK Hynix stock movement