SK hynix Reportedly in Talks to Acquire Intel's Ohio Chip Campus

South Korean memory chipmaker SK hynix Inc. is in talks to acquire Intel Corporation's massive semiconductor campus in Ohio, according to a report from the Korea JoongAng Daily. The potential deal would mark a significant step for SK hynix in establishing front-end memory chip fabrication in the United States, a key goal for both the company and Washington.

Details of the Potential Deal

Citing sources familiar with the matter, the newspaper reported that SK hynix is conducting an internal review and navigating the government approval process for the acquisition. While the purchase price and a specific timeline remain under discussion, the company is reportedly targeting the start of front-end memory chip production at the Ohio site within five years.

News of the potential transaction was well-received by investors. Shares of SK hynix surged 8.4% following the report, reflecting optimism about the strategic expansion into U.S.-based wafer fabrication.

Strategic Rationale

For SK hynix, the acquisition would accelerate its U.S. manufacturing footprint. The company is already building a $3.87 billion advanced packaging facility in Indiana, slated to open in 2028. Adding front-end production in Ohio would create a more integrated domestic supply chain and satisfy growing political pressure for leading chipmakers to localize manufacturing.

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For Intel, selling the campus could provide significant liquidity as it restructures its struggling foundry business. The division has faced manufacturing delays and posted substantial operating losses, including $2.2 billion last year and another $2.4 billion in the first quarter of this year. The sale would allow Intel to monetize an asset that has proven difficult to develop on its own.

Background on the Ohio Campus

Intel broke ground on the New Albany, Ohio, campus in 2022, marking its first new U.S. manufacturing site in four decades. The ambitious project, on a roughly 1,000-acre site, was designed to eventually house up to eight fabrication plants at an estimated cost of around $100 billion.

Intel's initial plan involved a $28 billion investment for the first two plants, backed by incentives from the U.S. CHIPS and Science Act. However, the company later pushed the project's operational timeline to between 2030 and 2031 as its foundry business struggled to attract major customers and the company sought to control spending.