SK hynix, one of the world's largest memory chipmakers, is reportedly considering Intel's chipmaking campus in New Albany, Ohio, as a potential site for US memory production, according to a report from Korea JoongAng Daily. The South Korean company, however, says it hasn't pursued or decided on an acquisition.
The report suggests SK hynix is reviewing the plan internally, pursuing government approvals, and still negotiating price and timing, with a goal of starting "front-end" production—the early wafer-making steps—within five years. That timeline matters: chip fabrication plants, or fabs, typically take years to build and equip, so buying an existing site could accelerate SK hynix's entry into the US market.
Why Ohio Matters for Memory Chips
Intel's New Albany campus is a massive, partially built facility that Intel originally planned to use for its own advanced chip manufacturing. The site has already secured permits and infrastructure, making it an attractive option for a company like SK hynix that wants to avoid the lengthy process of building from scratch. The Ohio location also benefits from proximity to research hubs like Albany NanoTech, where ASML's $400 million High NA EUV tool recently arrived for chip research.
Memory chips—the kind used in smartphones, computers, and data centers—are a critical component of the global electronics supply chain. SK hynix is a dominant player in this market, alongside Samsung and Micron. Currently, most memory production is concentrated in Asia, particularly South Korea and Taiwan. A US facility would diversify SK hynix's manufacturing footprint and reduce reliance on a single region.
US Push for Onshore Chip Manufacturing
The potential deal comes as Washington aggressively pushes to bring semiconductor manufacturing back to American soil. The CHIPS and Science Act, passed in 2022, provides billions of dollars in grants and tax credits to companies that build or expand chip plants in the US. Intel, TSMC, and Samsung have all announced major US fab projects, but progress has been uneven. US factory output stalled in June, highlighting the challenges of ramping up industrial production.
For SK hynix, acquiring an existing Intel site could offer a faster route to qualifying for CHIPS Act funding and meeting customer demands for domestically produced memory. Major tech companies like Apple, which relies on memory chips for its iPhones, have been pushing suppliers to diversify production. Apple's June iPhone sales held steady, but memory costs threaten margins, according to UBS, underscoring the importance of stable memory supply chains.
What It Means for Investors
For everyday investors, this story touches on several key themes. First, it signals that the semiconductor industry is still in the midst of a major geographic shift. Companies are spending billions to build or buy facilities in the US, Europe, and elsewhere to reduce dependence on Asia. This trend could benefit companies that supply chipmaking equipment, construction firms, and even local real estate markets near fab sites.
Second, the potential deal highlights the ongoing relationship between SK hynix and Intel. The two companies have a history: in 2020, SK hynix agreed to acquire Intel's NAND memory business for $9 billion, a deal that closed in stages through 2025. That acquisition gave SK hynix Intel's NAND flash memory operations, including a fab in Dalian, China. The Ohio campus would be a separate transaction, but it shows how the two companies continue to interact in the memory space.
Third, investors should watch how this plays out against the backdrop of Intel's own struggles. Intel has been working to turn around its business, with its stock rallying 185% before recent earnings tested whether that rally could survive weak PC sales. The company has also been investing heavily in new chipmaking technologies, including using ASML's $400 million High NA EUV tool for its Panther Lake chips. Selling the Ohio campus could provide Intel with much-needed cash to fund its turnaround, while giving SK hynix a ready-made US facility.
Finally, the deal underscores the importance of memory chips in the broader tech ecosystem. Memory prices have been volatile in recent years, with a downturn in 2022-2023 followed by a recovery in 2024. South Korea recently raided top memory interface chip suppliers in a price-fixing probe, showing that regulators are watching the market closely. For investors in tech stocks, understanding the dynamics of the memory market is increasingly important, as it affects everything from smartphone margins to data center costs.
SK hynix's potential move into Ohio is still in the exploratory stage, with no guarantee a deal will happen. But the fact that the company is even considering it reflects the broader forces reshaping the global chip industry: the push for supply chain resilience, the availability of government incentives, and the strategic importance of being close to customers in the US market.
