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Is SK Hynix Buying Intel’s Ohio Fab? Korean Chipmaker Denies Report — Now All Eyes Are on Earnings

Daniel Nenni

Daniel Nenni

Founder
Staff member
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  • - A Korean news outlet on Tuesday reported that SK Hynix was in talks with Intel to acquire its upcoming fab campus in Ohio.
  • - Moor Insights & Strategy CEO Patrick Moorhead said the reported talks are highly unlikely, adding that the Ohio campus remains core to Intel's foundry business.
  • - Intel is scheduled to report its second-quarter results on Thursday.

SK Hynix has denied a report claiming the South Korean memory chipmaker is in talks to acquire Intel's under-construction Ohio fab campus. Still, the report stirred a buzz among retail traders and sent SK Hynix's U.S.-listed shares down about 1.4% in the overnight session late Tuesday.

SK Hynix listed its shares on Nasdaq on June 10 after raising more than $26 billion from U.S. investors, adding one of the world's biggest memory chipmakers to the red-hot U.S. memory trade.

On Tuesday, Korea JoongAng Daily reported that the company was in the midst of an internal review and government approval process related to the purchase, with a goal of producing memory semiconductors in the U.S. within five years.

Citing information that it exclusively obtained, the South Korean news outlet said that such a deal would help SK hynix meet Washington's demands for U.S.-based production while giving cash-strapped Intel a lifeline for its struggling foundry business.

SK Hynix denied any such plans. In a regulatory filing on July 22, the company said that while it "continuously reviews various business investment and acquisition opportunities," it "has not pursued or decided to acquire Intel's Ohio site and fab as reported in the article." Intel has not yet responded to the media report publicly.

Moor Insights & Strategy CEO Patrick Moorhead said the reported talks are highly unlikely, adding that the Ohio campus remains core to Intel's foundry business.

"I recognize that SK Hynix needs more U.S. capacity and the USG would like them to make U.S. investments like Samsung and Micron. I also recognize that Intel doesn't have a wafer foundry future without Columbus. And I believe Intel will have some major wafer customers," Moorhead said on X.

On Stocktwits, retail sentiment was 'bullish' for INTC and 'bearish' for SKHY. The chip stocks have risen sharply in the last two sessions.

"$INTC reaffirmed its commitment to investing in its Ohio semiconductor campus, while $SKHY denied reports that it plans to acquire the facility," a trader said.

"As AI demand continues to grow, domestic chip manufacturing remains a strategic priority. However, long-term value for $INTC will depend on execution, profitability, and its ability to attract foundry customers—not just expansion plans," they said.

Intel's Fab Footprint​

Intel announced its Ohio One semiconductor manufacturing campus in January 2022, and said it would invest $28 billion initially to build two leading-edge chip fabrication plants in New Albany, near Columbus.

The nearly 1,000-acre site broke ground in September 2022 and has been under construction since, but the project has faced multiple delays amid weaker chip demand and Intel's cost-cutting efforts. Under the latest timeline, the first fab is expected to be completed in 2030 and begin operations between 2030 and 2031.

Intel's largest fabs are in Oregon (Hillsboro) for leading-edge process development, Arizona (Chandler) for high-volume advanced chip production, and New Mexico (Rio Rancho) for advanced packaging, and Ireland (Leixlip), which serves as Intel's primary European manufacturing hub.

Intel's Turnaround, Results Watch​

After Intel appointed Lip-Bu Tan as its CEO and the U.S. government picked up a 10% stake last year, Intel's stock has rallied handsomely. Under Tan, Intel is showing improvement in its long-struggling foundry business, including onboarding marquee customers like Apple and SpaceX.

Intel Foundry's operating loss narrowed to $2.4 billion in the first quarter, improving by $72 million sequentially, helped by better yields across Intel 4, 3 and 18A processes.

finance.yahoo.com

Is SK Hynix Buying Intel’s Ohio Fab? Korean Chipmaker Denies Report — Now All Eyes Are on Earnings

SK Hynix’s U.S. shares dipped in the overnight session, following its denial.
finance.yahoo.com finance.yahoo.com
 
Daniel Nenni said:
Another ridiculous rumor from Korea quashed. :ROFLMAO:
Click to expand...

But could it be a good idea?

At this point, Intel doesn't have enough money and enough customer demands to complete the Ohio fabs before the end of this decade anyway. Intel could raise billions of dollars by offloading the Ohio fab project to another company and reinvesting the proceeds in more urgent areas to better compete in this fast changing market.
 
Last edited:
hist78 said:
But could it be a good idea?

At this point, Intel doesn't have enough money and enough customer demands to complete the Ohio fabs before the end of this decade anyway. Intel could raise billions of dollars by offloading the Ohio fab project to another company and reinvesting the proceeds in more urgent areas to better compete in this fast charging market.
Click to expand...

Also remember that Intel is already losing talent to TSMC in Arizona. If it ends up losing the Ohio site as well, where will its future growth come from?

TSMC and SK Hynix are not fools. Their investments in the U.S. are not just about expanding capacity and gaining political goodwill—they also help attract talent, secure resources, and potentially weaken competitors at the same time. From a strategic perspective, they are strengthening their own positions while making it harder for rivals like Intel to execute their long-term plans.
 
tim_b said:
Also remember that Intel is already losing talent to TSMC in Arizona. If it ends up losing the Ohio site as well, where will its future growth come from?

TSMC and SK Hynix are not fools. Their investments in the U.S. are not just about expanding capacity and gaining political goodwill—they also help attract talent, secure resources, and potentially weaken competitors at the same time. From a strategic perspective, they are strengthening their own positions while making it harder for rivals like Intel to execute their long-term plans.
Click to expand...

BTW, what's Intel's long term plan?
 
hist78 said:
BTW, what's Intel's long term plan?
Click to expand...
You can ask Pat why Intel decided to build the Ohio fab in the first place—he’ll explain the strategic rationale to you. It wasn’t a random decision; it was about creating a long-term growth platform and securing room for future expansion. If Intel loses that opportunity, the question becomes: where does the company grow next?
 
siliconbruh999 said:
i doubt that tbh No Ohio means where are you fabbing for 14A customer can be a. JV but that's the only possibility i see.
Click to expand...


Fab 62 in Arizona is slated for Intel 14A risk production starting in 2028, with high volume production beginning in 2029. The earliest production at Intel's New Albany, Ohio, site is expected to be in 2030, 2031, or even later if Intel has money to make it happen.

If demand for Intel 14A exceeds what Fab 62 can handle, why can't Intel simply build more fabs in Arizona? Intel can't afford to, and it doesn't need to spread its limited resources across additional manufacturing sites.
 
hist78 said:
Fab 62 in Arizona is slated for Intel 14A risk production starting in 2028, with high volume production beginning in 2029. The earliest production at Intel's New Albany, Ohio, site is expected to be in 2030, 2031, or even later if Intel has money to make it happen.
Click to expand...
You are wrong here a bit FAP 62 is 18AP
hist78 said:
If demand for Intel 14A exceeds what Fab 62 can handle, why can't Intel simply build more fabs in Arizona? Intel can't afford to, and it doesn't need to spread its limited resources across additional manufacturing sites.
Click to expand...
The problem is Intel products will fill both of those by 14A time
 
siliconbruh999 said:
You are wrong here a bit FAP 62 is 18AP

The problem is Intel products will fill both of those by 14A time
Click to expand...

Intel's Ohio fab is currently targeted to begin production in 2030 or 2031. That's too late to support Intel 14A's planned 2028–2029 risk production and high volume manufacturing schedule.

Intel 18A-class processes, including 18A-P, are planned for Intel Fab 52 in Arizona. If demand for 18A becomes too large for Fab 52 to handle, Fab 62 can serve as an overflow production fab.
 
tim_b said:
You can ask Pat why Intel decided to build the Ohio fab in the first place—he’ll explain the strategic rationale to you. It wasn’t a random decision; it was about creating a long-term growth platform and securing room for future expansion. If Intel loses that opportunity, the question becomes: where does the company grow next?
Click to expand...

What’s wrong with Intel expanding its capacity in Arizona? It already has the manufacturing expertise, supply chain network, and readily available internal and external resources to support additional fabs there. Expanding in Arizona would allow Intel to build on established infrastructure instead of starting from scratch in Ohio. It was a very expensive decision at the time, and it has become an even more expensive undertaking now and in the future.

Meanwhile, TSMC is planning to build ten fabs and two advanced‑packaging facilities in Phoenix, Arizona, about an hour’s drive north of Intel’s Chandler campus. In 2020, TSMC purchased 1,129 acres, and in January 2026 it acquired another 902 acres from the State of Arizona. Of the planned fabs, one is completed and in production, one is currently undergoing tool installation, and another is still under construction.

To me, Intel missed a cost‑effective and time‑efficient opportunity by not expanding further in Arizona, effectively handing that advantage to TSMC.
 
hist78 said:
What’s wrong with Intel expanding its capacity in Arizona? It already has the manufacturing expertise, supply chain network, and readily available internal and external resources to support additional fabs there. Expanding in Arizona would allow Intel to build on established infrastructure instead of starting from scratch in Ohio. It was a very expensive decision at the time, and it has become an even more expensive undertaking now and in the future.

Meanwhile, TSMC is planning to build ten fabs and two advanced‑packaging facilities in Phoenix, Arizona, about an hour’s drive north of Intel’s Chandler campus. In 2020, TSMC purchased 1,129 acres, and in January 2026 it acquired another 902 acres from the State of Arizona. Of the planned fabs, one is completed and in production, one is currently undergoing tool installation, and another is still under construction.

To me, Intel missed a cost‑effective and time‑efficient opportunity by not expanding further in Arizona, effectively handing that advantage to TSMC.
Click to expand...
I believe this is largely a consequence of U.S. policy. In Taiwan, regulations are designed to protect local businesses by limiting the extent to which foreign companies can hire local talent. The situations at NVIDIA's and AMD's Taiwan R&D centers are often cited as examples. Meanwhile, the U.S. appears to be treating the issue as if nothing significant is happening.

TSMC clearly has deeper financial resources and a stronger HR operation than Intel. If Intel were to compete head-to-head with TSMC for engineering talent in AZ, it would likely have to significantly increase compensation packages, driving up labor costs. Given Intel's already challenging financial situation, such a talent war would only add further pressure to its profitability and turnaround efforts.
 
tim_b said:
I believe this is largely a consequence of U.S. policy. In Taiwan, regulations are designed to protect local businesses by limiting the extent to which foreign companies can hire local talent. The situations at NVIDIA's and AMD's Taiwan R&D centers are often cited as examples. Meanwhile, the U.S. appears to be treating the issue as if nothing significant is happening.
Click to expand...

I’m not sure where you’re seeing claims that the Taiwan government is restricting Nvidia, Micron, Google, Microsoft, or any other U.S. or European companies from hiring local employees. Micron alone plans to increase its Taiwan-based headcount to 15,000 by the end of 2026, and Nvidia is expanding its Taiwanese workforce from 2,000 to 4,000 over the next several years. Taiwan does have regulations restricting recruitment activities from mainland China, for obvious reasons.

The U.S. government, just like Taiwan, doesn’t restrict foreign companies operating in the U.S. from hiring Americans, because it wouldn’t make sense. Foreign investment creates jobs and increases tax revenue. If the U.S. government restricted hiring, where would foreign companies find workers? Import even more foreign labor?
 
hist78 said:
What’s wrong with Intel expanding its capacity in Arizona? It already has the manufacturing expertise, supply chain network, and readily available internal and external resources to support additional fabs there. Expanding in Arizona would allow Intel to build on established infrastructure instead of starting from scratch in Ohio. It was a very expensive decision at the time, and it has become an even more expensive undertaking now and in the future.

Meanwhile, TSMC is planning to build ten fabs and two advanced‑packaging facilities in Phoenix, Arizona, about an hour’s drive north of Intel’s Chandler campus. In 2020, TSMC purchased 1,129 acres, and in January 2026 it acquired another 902 acres from the State of Arizona. Of the planned fabs, one is completed and in production, one is currently undergoing tool installation, and another is still under construction.

To me, Intel missed a cost‑effective and time‑efficient opportunity by not expanding further in Arizona, effectively handing that advantage to TSMC.
Click to expand...

I don't know what the full calculus is/was, but Arizona has a couple of big potential drawbacks. 1. There's very strong competition for talent there, now. 2. The water situation is getting worse by the month - Lake Mead is dangerously low on water.

(I know there is an argument that fabs are approaching water neutral, but that won't affect public perception of them as businesses when drinking water taps run dry).

One "bonus" for Ohio: It gives both the semiconductor industry and Intel more .. lobbying power than if they had less locations. Part of the reason NASA and Defense companies can lobby so well is they can threaten job and economic impacts across many states.
 
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