Story
SK Hynix Shares Surge on Report of U.S. Production Talks with Intel
Summary
Shares of the South Korean memory chip giant jumped 5.6% following a report that it is in preliminary talks with Intel for its first U.S.-based chip production, aiming to meet soaring AI-driven demand for HBM.
Shares of South Korean memory chipmaker SK Hynix Inc. surged on Friday, buoyed by a report that the company is in early discussions with Intel Corp. for its first-ever U.S.-based chip production. The stock (000660.KS) closed up 5.6% at ₩1,843,000, rebounding sharply from recent losses amid a broader tech rally.
U.S. Production Talks
The rally followed a Reuters report detailing preliminary negotiations between the two semiconductor giants. According to the report, two potential collaboration models are under consideration:
- SK Hynix leasing production capacity at Intel's planned semiconductor factory in Ohio.
- A joint venture involving SK Hynix, Intel, and major cloud service providers to secure a stable supply of memory chips.
SK Hynix confirmed to Investing.com that it is actively evaluating options to expand its memory chip capacity but stated that no final decision has been made at this time.
Strategic Importance for AI Market
AdInvestors reacted positively to the news, which addresses the surging global demand for High-Bandwidth Memory (HBM), a critical component for powering artificial intelligence data centers. SK Hynix is the world's leading supplier of HBM chips, which are essential for training and running advanced AI models.
A potential U.S. production base would not only help meet this demand but also align with Washington's strategic push to onshore more semiconductor manufacturing amid a global, AI-driven chip shortage.
Broader Market Tailwinds
The gains were amplified by a widespread rally in Asian technology stocks, which took cues from an overnight advance on Wall Street. Market sentiment improved as U.S. 10-year Treasury yields pulled back from recent highs above 5% and oil prices softened.
South Korea's benchmark KOSPI index (KS11) rose approximately 2%, led by the semiconductor sector. The positive momentum was also reflected in gains for competitor Samsung Electronics Co Ltd (005930.KS), indicating broad strength across the industry.
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