Intel and SK Hynix in Talks for Memory Chip Manufacturing Deal at Ohio Facility, With Shares Rising 5 Percent and 2 Percent Respectively on September 16

Intel and SK Hynix are in exploratory talks about a deal that would see the South Korean memory chip maker manufacture on US soil for the first time, with discussions focused on SK Hynix leasing part of Intel's Ohio facility or forming a joint venture with Intel and major cloud firms, according to Reuters reports confirmed by multiple outlets on September 16. Intel shares rose around 5 percent in pre-market trading on Wednesday, while SK Hynix gained approximately 2 percent, lifting rivals Micron Technology by 1.4 percent and Samsung Electronics by 1.1 percent. SK Hynix confirmed it is exploring various options to strengthen its global competitiveness but stressed that no specific plans or arrangements have been finalized and no decisions have been made regarding the scenarios reported. The talks come as US Commerce Secretary Howard Lutnick has threatened to impose up to 100 percent tariffs on South Korean and Taiwanese companies unless they commit to ramping up production on US soil, intensifying pressure on chipmakers to build domestically as relentless AI and data center investment fuels acute memory chip shortages. A deal would relieve financial pressure on Intel, which has invested $28 billion in its Ohio manufacturing plants and is part-owned by the US government after receiving $8.9 billion in federal grants converted to equity. However, any agreement faces potential opposition from the South Korean government under the Industrial Technology Protection Act. SK Hynix is the world's second-largest memory chip manufacturer after Samsung, producing DRAM, NAND flash, and high-bandwidth memory used in AI processing units. Intel reported second-quarter revenue of $16.1 billion but posted an $11 billion net loss due to $12.5 billion in escrowed shares for federal grant money.