Overview
SK Hynix Inc. is reportedly in negotiations to acquire Intel Corporation’s semiconductor campus in New Albany, Ohio. Sources say the South Korean memory‑chipmaker is undertaking an internal review and seeking government approval, while the purchase price and exact timeline remain under discussion. SK Hynix aims to commence front‑end memory chip production at the site within five years.
Campus Details
The Ohio complex spans roughly 1,000 acres and was originally designed to accommodate up to eight fabrication plants. Intel broke ground on the site in 2022, marking its first new U.S. manufacturing facility in four decades. The overall development cost is estimated at about $100 billion, with an initial $28 billion investment planned for the first phase to build two advanced fabs under incentives from the CHIPS and Science Act.
Intel’s Position
Intel has scaled back the project as its foundry business faced customer shortages, manufacturing delays, and yield problems, prompting a shift of the operational target to 2030‑31. The company posted a $2.2 billion operating loss for the last fiscal year and a further $2.4 billion loss in the first quarter of the current year. Selling the largely completed Ohio campus would generate additional liquidity as Intel restructures its foundry operations. Intel recently appointed former SK Hynix chief executive Lee Seok‑hee as executive vice‑president of its foundry division.
SK Hynix Strategy
The potential acquisition would extend SK Hynix’s U.S. footprint beyond its $3.87 billion high‑bandwidth memory (HBM) packaging plant under construction in Indiana, which is slated to start operations in 2028. Adding front‑end DRAM wafer fabrication would address a gap in Washington’s goal of a fully integrated domestic semiconductor supply chain. The move aligns with the U.S. government’s push, under the CHIPS and Science Act, to localise chip production.
Market Reaction
Following the news, SK Hynix shares rose 8.4%, reaching their highest level in nearly two weeks and outperforming the KOSPI’s 5.6% gain as investors poured into AI‑linked semiconductor stocks amid a broader technology rally.
Policy Context
U.S. Commerce Secretary Howard Lutnick recently urged Samsung Electronics and SK Hynix to build production facilities in the United States. SK Group Chairman Chey Tae‑won confirmed that the group is evaluating locations for new semiconductor plants in the country.