This week, Reuters reported on talks between US chipmaker Intel and South Korean memory giant SK Hynix about a potential partnership. Deals on the table were said to involve renting Intel’s much-treasured fab space for memory production or starting a joint venture. While the news boosted Intel’s stock, it hasn’t materialized and SK Hynix denies any plans are confirmed.
In a not-to-be-misunderstood fashion, SK Hynix says no plan is confirmed with Intel, while outlining the claims made in the Reuters piece. The short statement on the South Korean company’s website, somewhat humorously with the URL affix “fact-10”, only suggests SK Hynix is “exploring various options to strengthen its global competitiveness”.
The supposed plan involves Intel’s Ohio facility, which isn’t producing chips yet. It may go online in 2032, but delays for such fab constructions are common and have already pushed it beyond 2030. The plant is slated to deploy advanced chip nodes such as Intel 14A, built using ASML’s High-NA EUV machines.
Ohio remains a slow-moving project
Original plans for the Ohio plant had output beginning in 2026. Of the 7.8 billion dolllars in CHIPS Act funding awarded to Intel, 2.2 billion dollars have been paid out. At least 1.5 billion dollars has been earmarked for the New Albany site. There’s no clarity on SK Hynix’s potential role financially, but any deal with up-front cash handed to Intel would help pull ‘Chipzilla’ out of its burdensome position. Despite a US government bailout, the venerable chip manufacturer has yet to see AI returns on par with the likes of Nvidia or AMD.
SK Hynix and Intel know one another well
The two companies already have a shared track record, albeit of a more straightforward transactional nature. SK Hynix agreed to buy Intel’s NAND business for roughly 9 billion dollars back in 2020, a deal now operating under the Solidigm brand. Intel did keep Optane. In what looks to be a missed opportunity nowadays, the normally commodified DRAM sales of the large memory manufacturers SK Hynix, Samsung and Micron have gone through the roof. HBM, which effectively contains stacks of DRAM and advanced 3D architectures around them, further eats into DRAM availability.
SK Hynix, emboldened by its AI fortunes, plans to double its wafer capacity in response to shortages, and placed an 8 billion dollar order with ASML.
SK Hynix says it will communicate if anything changes with regard to the reported Intel discussions.