Intel Reportedly Seeks Partner for Ohio Chip Plant; SK Hynix Named as Potential Candidate

Intel Corp. is reportedly seeking a partner to co-operate its semiconductor manufacturing facility in Ohio, a move that would involve sharing operational responsibilities rather than an outright sale. South Korean memory manufacturer SK Hynix is among the companies being evaluated for a potential partnership, according to a Semafor report published Wednesday.

Early Stage Discussions

The talks are said to be in their very early stages, and the two companies have not entered into formal negotiations for an operating agreement, the report stated. This development follows a separate report from South Korean media, which SK Hynix denied on Tuesday, that claimed it was in talks to acquire the Ohio campus outright.

The search for a partner suggests Intel is exploring alternative strategies to manage the massive capital expenditure required for the project. A partnership could help de-risk the investment and share the operational burden of the large-scale facility.

Project Delays and Context

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Intel broke ground on the Ohio site in 2022, announcing plans for a $28 billion investment in what would be its first new chip-manufacturing plant in four decades. However, the project has faced significant delays.

The company has since missed its original target to open the facility in 2025, pushing the expected completion date to 2030 following a series of layoffs. This potential partnership comes as Intel has been forming more agreements with competitors and customers to expand U.S.-based chipmaking capacity, a strategy that has gained momentum since the U.S. government took a strategic stake in the company last year.

Market Reaction

Following the report on Wednesday, shares of Intel (INTC) rose 1% in after-hours trading. Shares of SK Hynix had traded approximately 3.2% higher. The market's positive, albeit modest, reaction indicates that investors may view a potential partnership as a prudent step to manage the project's scale and timeline.