SK Hynix poured cold water on Intel's plans, stating that a collaboration with Intel in the US is "still undecided," causing Intel's pre-market gains to narrow.

Just as news of SK Hynix's collaboration with Intel to produce memory chips in the US had boosted market sentiment, SK Hynix's subsequent statement has added uncertainty to this potential partnership.

On September 16, SK Hynix stated, " We would like to clarify that there is currently no conclusion regarding any cooperation with any specific company mentioned in the reports, or the production of memory chips in the United States. SK Hynix is exploring various options to enhance its global competitiveness, but no specific plans or arrangements have been finalized." The company also stated that no decision has been made regarding either of the two cooperation scenarios mentioned in the reports.

According to a Reuters report earlier that day, three sources familiar with the matter revealed that South Korean semiconductor giant SK Hynix is in talks with Intel regarding a potential collaboration to produce memory chips in the United States for the first time. The negotiations are focused on Intel's chip manufacturing plant in Ohio.

Following the news, Intel's pre-market stock price rose nearly 6%. After SK Hynix released a statement, Intel's pre-market gains narrowed to around 3%.

The cooperation model remains to be determined, and US production costs may be a key variable.

According to a previous article by Wall Street Insights , there are two main options being discussed between the two parties: one is for SK Hynix to lease part of the capacity of Intel's Ohio factory to produce memory chips locally; the other is for SK Hynix to establish a joint venture with Intel and major cloud computing companies, with cloud providers securing memory chip supplies through cooperation.

Previous reports described the negotiations as "exploratory," emphasizing that a final solution had not yet been determined, and SK Hynix might consider other cooperation structures. Reuters reports that it remains unclear what type of memory chips SK Hynix will manufacture in Ohio if an agreement is ultimately reached. Its product line includes DRAM and NAND flash memory for servers, PCs, and smartphones, as well as high-bandwidth memory (HBM) for AI processors.

If the collaboration goes through, SK Hynix's involvement could bring new capacity utilization and commercialization opportunities to Intel's Ohio project. Intel announced in 2022 that it would invest up to $100 billion in the area to build a large chip manufacturing base, but the project has been significantly delayed, with the completion dates for the two factories postponed to 2030 and 2031, respectively.

For SK Hynix, expanding its production footprint in the United States brings it closer to key customers such as AI data centers. Current investment in AI and data centers continues to grow, and cloud computing companies are seeking more stable storage chip supplies, providing a demand basis for potential collaborations.

However, the cost of producing semiconductors in the United States is significantly higher than in South Korea. The report, citing sources familiar with the matter, stated that higher labor and construction costs in the US, coupled with the fact that the majority of the semiconductor supply chain remains concentrated in Asia, drive up the overall cost of domestic production in the US.

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