SK Hynix Denies Intel Ohio Plant Deal

SK Hynix is officially denying market speculation that it will acquire Intel’s semiconductor production facilities in Ohio, United States. Through a clarification disclosure on July 22, SK Hynix stated that it has neither pursued nor decided on the acquisition of Intel’s Ohio site and fab. Previously, some media outlets reported that SK Hynix was in negotiations with Intel to acquire the Ohio campus with the goal of producing memory semiconductors locally in the United States within five years. The background to this acquisition rumor lies in Intel’s deteriorating performance and the adjustment of its investment plans. Intel is constructing two large-scale semiconductor plants in New Albany, Ohio, but has recently delayed the operational schedule from its original plan due to management difficulties. Intel has established a policy to complete the construction of the first fab in 2030 and begin operations around 2031. SK Hynix added a principled position that it continuously reviews various investment and acquisition opportunities for business purposes. This is interpreted as an intention to maintain strategic options to respond to the rapidly changing semiconductor market environment, while denying the acquisition of a specific fab. Currently, the production investment SK Hynix is officially pursuing in the United States is an advanced packaging plant in Indiana. The company is investing approximately $3.87 billion in West Lafayette to build High Bandwidth Memory (HBM) back-end processing and research and development (R&D) facilities. This facility is characterized as a back-end processing hub that stacks and connects produced chips, rather than a front-end processing facility that engraves circuits onto wafers. The industry anticipates that if SK Hynix establishes even a front-end processing fab locally in the United States, it will entail a massive cost burden and operational risks. A semiconductor industry official explained, “Directly operating a front-end processing fab in a situation where manufacturing costs in the United States are high is a matter that requires close review in terms of profitability.” Market experts forecast that SK Hynix will focus its capabilities on completing and operating the Indiana packaging facility for the time being. This is because securing back-end processing technological competitiveness is an urgent priority in a situation where HBM demand is surging due to the expansion of the artificial intelligence (AI) market. However, if the scale of subsidies under the United States government’s CHIPS Act and demands for local production intensify, the possibility of reconsidering the acquisition of front-end processing facilities in the long term cannot be ruled out. SK Hynix plans to closely monitor market conditions and operate its investment strategy in a direction that can maximize corporate value. [https://www.businesskorea.co.kr/news/articleView.html?idxno=273424](https://www.businesskorea.co.kr/news/articleView.html?idxno=273424)