Intel and SK Hynix are in early-stage discussions to either lease Intel chipmaking facilities or form a joint venture to produce memory chips in the United States, Reuters reported Wednesday. The talks, which remain exploratory, could eventually add American-made memory chip supply and increase competitive pressure on Micron Technology, the dominant U.S. memory player. Intel's planned Ohio semiconductor hub—already delayed from a 2025 production target to 2030–2031—is central to the discussions, with options including SK Hynix leasing part of the facility or a joint venture involving major cloud providers seeking memory supply.
Micron shares were up 0.69% in premarket trading at $933.99 on Wednesday. The company has moved to strengthen its U.S. manufacturing position, expanding its investment plan to $250 billion through 2035 and committing $10 billion to build Micron Research Labs in Boise, Idaho. On Tuesday, Micron named Deidre Hanford, a 37-year Synopsys veteran, as president of the new research lab. Hanford will oversee research strategy and partnerships with universities, governments, startups, and technology partners. Micron reports earnings Sept. 30, with Wall Street expecting EPS of $31.30 on revenue of $50.78 billion.
Separately, SK Hynix stock rose 3.49% in premarket to $180.93 after its labor union approved a revised profit-sharing deal, easing disruption concerns. The new agreement raises the cash portion of bonuses from 40% to 50%, removes the cap on profit-sharing entirely, and sets aside 10% of annual operating profit for employee bonuses over the next 10 years. About 57% of union members voted in favor, following an earlier rejection in August. In South Korea, listed shares of SK Hynix gained 4% on Wednesday. Intel shares rose more than 5% in premarket to $102.03 after the Ohio talks news broke.
Analyst views remain broadly positive for both memory names. Wall Street rates SK Hynix a Strong Buy with an average price target of $249.70, implying more than 40% upside. JPMorgan started coverage with an Overweight rating and $245 target on Sept. 10, Needham maintained Buy with a $220 target on Aug. 24, and Wolfe Research initiated Outperform at $200 on Aug. 4. SK Hynix also approved a ₩40 trillion share buyback in August. On Micron, analysts hold a Buy consensus and an average target of $1,521.74. Mizuho maintained Outperform but trimmed its target to $1,300 on Aug. 25; New Street Research upgraded to Buy with a $1,250 target on Aug. 14; Citigroup kept Buy and lowered target to $1,150. Micron’s RSI stood at 46.59, indicating neutral momentum, with resistance near $1,012 and support around $887.50.
Pella Funds CIO Jordan Cvetanovski told CNBC that memory companies could perform well for another one to two years, citing unusually high margins and industry returns. However, any advanced HBM or DRAM technology deal between Intel and SK Hynix could require South Korean government review because those technologies are classified as sensitive national assets.
