One idea being discussed is leasing part of Intel's Ohio chip plant, people familiar with the matter told the outlet. Another route could be a joint venture involving Intel and major cloud providers. Reuters said the talks are in the early, exploratory stage and that no decisions have yet been reached, noting SK Hynix may weigh other deal formats, too.
The report nudged both stocks higher. Intel was up about 5%, while SK Hynix's Nasdaq-listed shares added around 2%. An intraday Intel quote showed 101.88, up 4.73 (4.87%) at 10:22 AM EDT.
"SK hynix is exploring various options to strengthen its global competitiveness, but no specific plans or arrangements have been finalized at this time," the company said Wednesday. "No decisions have been made regarding the two scenarios mentioned in the article." CNBC requested comment from Intel, but the company did not respond right away. If negotiations ultimately yield an agreement, it would mark a notable victory for Intel as it seeks high-profile customers for its foundry business, a central element of CEO Lip-Bu Tan's strategy, and it could also further U.S. efforts to expand domestic semiconductor manufacturing.
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SK Hynix is a leading supplier of high-bandwidth memory, a crucial piece of Nvidia's chips, and it makes other memory products vital for AI workloads. Reuters, citing three sources, reported that any plan to produce advanced memory such as HBM could encounter resistance from South Korea's government on the grounds that the technologies are deemed sensitive.
The AI surge has tightened memory supply, lifted prices, and fattened profits for SK Hynix and Samsung. SK Hynix listed its American depository receipts on Nasdaq in July, and its South Korea-listed shares have climbed 400% over the past year. In June, the company said it intends to double its capacity over the next five years.
Speaking to CNBC in July, Chairman Chey Tae-won said that demand for HBM is immense. The company is also expanding in the U.S., having broken ground last month on its first American facility in Indiana. CEO Kwak Noh-Jung said the $4 billion site will make the state a "key HBM production base in America" by 2030.
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