Intel (INTC) shares jumped 5% after reports emerged that SK Hynix is considering using Intel’s Ohio fab for U.S. memory chip production.

Intel stock jumped approximately 5% on Wednesday after reports emerged that SK Hynix is exploring a deal to manufacture memory chips at Intel’s Ohio semiconductor complex. This potential arrangement would mark the first time the South Korean chipmaker brings its memory production to the United States. Following the news, Intel (INTC) shares gained roughly 5%, peaking at a 5.5% increase at one point, while SK Hynix’s U.S.-listed shares rose around 3%.

The discussions remain exploratory, but they arrive amid surging artificial intelligence demand that has created an increasingly tight market for advanced memory. One option under consideration involves SK Hynix leasing a portion of Intel’s planned Ohio manufacturing complex. Alternatively, talks are reportedly examining a joint venture that would include Intel, SK Hynix, and major cloud-computing companies seeking to secure reliable memory supplies. No final decision has been reached.

For Intel, securing such a partnership would assign a critical new function to its long-delayed Ohio facility within the AI supply chain. It would also expand Intel’s roster of prospective domestic manufacturing clients. Earlier this year, Intel shares rallied 9% following the announcement of a U.S. chip partnership with Apple.

SK Hynix stands as one of the primary beneficiaries of the AI boom, serving as a leading supplier of high-bandwidth memory (HBM), which is deployed alongside AI accelerators. As enterprises scale larger AI systems and data centers, demand for memory has become increasingly strategic. A potential collaboration with Intel could enable SK Hynix to shift production closer to major American cloud providers while reducing reliance on Asian manufacturing. This broader infrastructure expansion extends beyond semiconductors; U.S. data centers could require a $110 billion power buildout as AI electricity demand surges.

The SK Hynix report introduces another catalyst during an exceptional year for Intel. INTC has nearly tripled in 2026, and the U.S. government’s substantial Intel holdings have appreciated significantly. Just last week, Intel stock surged 9% after reports of a CPU price increase added billions to the value of the federal stake.

Despite the positive market reaction, the latest negotiations do not guarantee a finalized agreement. SK Hynix has stated that it is reviewing various options for additional production bases, emphasizing that nothing has been decided.