Shares of Intel jumped 4.9% to $101.94 after Reuters reported that SK Hynix, the world's second-largest memory chipmaker, is exploring a deal to manufacture memory chips at Intel's massive Ohio facility — either by leasing space or forming a joint venture. The talks are preliminary, but the market's reaction reveals how hungry investors are for any sign that Intel's costly factory buildout can generate near-term returns. Intel's $28 Billion Ohio Gamble Gets a Lifeline — But Can a Memory-Chip Deal Rewrite the Foundry Math?
Shares jumped 4.9% to $101.94 after Reuters reported that SK Hynix, the world's second-largest memory chipmaker, is in talks with Intel about manufacturing memory chips on U.S. soil for the first time — potentially leasing part of Intel's long-planned chipmaking facility in Ohio or forming a venture with Intel and major cloud firms keen to lock in memory chip supplies . The discussions are early-stage, but the market's enthusiasm reflects a deeper question: can Intel turn its most expensive construction project from a cash drain into a revenue-producing asset?
A Delayed Mega-Project Finally Finds a Suitor. Intel broke ground on the Ohio facility in 2022 with a planned investment of $28 billion , but the timeline has slipped repeatedly. Originally targeting production by 2025, the schedule moved to 2027, then 2028, and now 2030 . Leasing space to SK Hynix would generate income from a site that currently generates none, easing the financial strain of a project that has been consuming capital for four years without producing a single chip.
Washington Wants This Deal to Happen. A deal would relieve pressure on Intel and mark a big win for the Trump administration, which has been ramping up pressure on chipmakers to build in the U.S. Intel has already secured up to $7.86 billion in CHIPS Act funding for its U.S. expansion. A partnership that places cutting-edge memory production on American soil strengthens the political rationale for that taxpayer investment — and could unlock additional government support.
The Foundry Story Needed Exactly This Kind of Catalyst. Intel's stock has been a turnaround bet all year, with the whole valuation debate coming down to one question: can Intel Foundry land paying, leading-edge external customers? In Q2 2026, Intel Foundry accounted for $5.8 billion in revenue, growing 31% . An SK Hynix deal — even a lease — would validate the foundry-as-a-platform thesis using Intel's physical assets rather than its process technology, a lower bar to clear.
Seoul Could Block It. Potential opposition from South Korea's government could be a major hurdle , since SK Hynix's chipmaking know-how is considered a national strategic asset. One source described the talks as exploratory, stressing that no decisions have been made . Investors should note that a similar report in July was flatly denied by SK Hynix in a Korea Exchange filing stating it "has not pursued or decided to acquire Intel's Ohio site and Fab" — yet the stock held most of its gains then, too. The market is betting the direction is right, even if the structure is unresolved.