Intel is considering SK Hynix as a potential partner to help operate its delayed Ohio semiconductor project, Semafor reported, after the South Korean memory maker formally denied pursuing an acquisition of the site.
SK Hynix is among the companies Intel is considering for a role at its Ohio One campus rather than as a buyer of the operation, according to people familiar with the matter.
The companies have not begun formal negotiations over a potential operating arrangement, and a person close to Intel described the interest as being at a very early stage. Neither company has confirmed a potential partnership.
Operating role differs from rejected acquisition report
The potential operating arrangement is separate from an earlier report that SK Hynix was seeking to acquire Intel's land and fabrication facilities in Ohio.
In a Form 6-K filed with the US Securities and Exchange Commission on July 22, SK Hynix said it regularly reviews investment and acquisition opportunities but had "not pursued, or made any determination regarding" an acquisition of the Ohio property.
The filing directly rejected the Korea JoongAng Daily report about a possible purchase. It did not address whether SK Hynix could participate in another type of arrangement involving the site.
Intel declined to comment on the potential partnership. The company has maintained that it remains committed to Ohio and will continue investing to accelerate the campus's readiness.
Ohio One rollout stretches into 2032
Intel broke ground on Ohio One in New Albany in September 2022. The company plans to invest more than US$28 billion in the initial development of two leading-edge chip factories serving Intel products and foundry customers.
The project remains under construction, but Intel has slowed the pace to align capital spending and the start of production with its business needs and broader market demand.
Under Intel's current official schedule, construction of the first facility, known as Mod 1, is expected to be completed in 2030, with operations beginning between 2030 and 2031.
Construction of Mod 2 is scheduled for completion in 2031, followed by the start of operations in 2032. Intel said it would retain the flexibility to accelerate construction and operations if customer demand warrants.
Memory demand drives capacity search
The report comes as SK Hynix looks for ways to expand capacity amid a widening supply-demand gap for memory.
SK Group chairman Chey Tae-won said at the Korea Chamber of Commerce and Industry's Jeju Forum on July 15 that customers were requesting 60% to 100% more memory for next year than for this year, while supply was expected to show little growth, according to Newsis.
Chey said semiconductor fabs needed to be built wherever suitable conditions were available and at sufficient scale to increase supply quickly. He said locations in the US should be considered where feasible, with potential sites ranked according to their suitability and how quickly production capacity could be established.
His remarks did not mention Intel or its Ohio campus, and did not confirm that SK Hynix is evaluating the site.
SK Hynix is separately expanding its manufacturing footprint in South Korea, including projects in Yongin and Cheongju. It is also investing an estimated US$3.87 billion in an advanced packaging and R&D facility in Indiana, where it plans to begin mass production in the second half of 2028.
SK Hynix has formally denied pursuing an acquisition of Intel's Ohio campus. Any potential role as an operating partner remains an early-stage possibility that neither company has confirmed.
Article edited by Ysi Chen
