"Breaking TSMC's Monopoly"...Intel (INTC) and SK Hynix's Secret Meeting Shakes the Industry

▲ Intel (INTC), Artificial Intelligence (AI)/AI-generated image

As the global artificial intelligence (AI) infrastructure expands and the shortage of memory semiconductors deepens, American Intel (Intel, INTC) has partnered with SK Hynix, making a bold move towards turning around its foundry business.

According to MarketWatch, an American economic media outlet, on September 17 (local time), Intel is discussing foundry manufacturing cooperation with SK Hynix, which is seeking to establish a memory semiconductor production system in the United States.

Potential cooperation discussion items include SK Hynix leasing a part of Intel's production facility under construction in Ohio, USA, or the two companies establishing a joint venture with large cloud companies. While an Intel spokesperson avoided immediate confirmation regarding the cooperation rumors, they emphasized, "Intel is committed to the Ohio project and continues to make large-scale investments to accelerate the plant's operation."

Intel previously withdrew from the direct sale of memory semiconductors due to declining profitability but still maintains a large-scale foundry production capacity. With the full financial support of the U.S. government and companies like NVIDIA (NVIDIA, NVDA), Intel is pursuing a turnaround and has targeted memory production as a new foundry growth area, aligning with the expanding demand for server central processing units (CPUs) due to the surge in AI workloads.

The memory semiconductor market operates under an oligopoly, making it challenging to meet the surging data demand. In the global semiconductor ecosystem, which has concentrated outsourced production to Taiwan TSMC (TSMC, TSM), Intel's manufacturing capabilities are seen as a key to diversifying the supply chain. However, as discussions between the two companies are still in the early stages, the success of a final contract remains uncertain, and the approval of the Korean government also remains a critical variable.

[Key Summary of the Article]

-Intel (INTC) is discussing cooperation with SK Hynix for memory production in the U.S. through leasing the Ohio plant and establishing a joint venture.

-The strategy is to absorb the surging demand for AI chips by providing foundry manufacturing capabilities instead of direct memory sales.

-It is drawing attention as an opportunity to diversify the global supply chain, but negotiations are in the early stages, and the approval process by the Korean government is cited as a variable.

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