SK Hynix Denies Acquisition of Intel’s US Fabs, Shares Under Pressure Falling Below 2 Million Mark

TradingKey - SK Hynix denies acquisition of Intel's US wafer fab, putting pressure on its stock price which briefly fell below the 2 million mark.

On July 22, SK Hynix officially debunked market rumors of its "planned acquisition of Intel's wafer fab and land facilities in Ohio, USA," releasing a formal statement today to clearly deny the rumor and stating that it "has neither decided to acquire the plant's assets nor has it ever sought such an acquisition."

Statement released by SK Hynix, Source: DART

Affected by the clarification of the acquisition rumors, SK Hynix's stock price came under pressure and slid intraday. This morning, SK Hynix's shares opened up over 9%, once breaking above the 2 million mark. Currently, SK Hynix's gains narrowed to 6.7%, losing the 2 million mark, and trading at 1,959,000 KRW.

SK Hynix stock price chart, Source: TradingView

Previously, investors hoped that SK Hynix could rapidly expand its domestic US capacity by acquiring existing plants to meet the soaring demand for high bandwidth memory (HBM) in the AI era. Now, the reversal of the news has dashed these expectations, causing its stock price to fluctuate and weaken.

Despite denying the acquisition news, it does not mean SK Hynix is giving up its US expansion. Currently, SK Hynix is already building an advanced HBM packaging facility in Indiana, USA, while the investment plan for a wafer fabrication plant has not yet been finalized. However, SK Group Chairman Chey Tae-won recently stated publicly that the group is scouting locations globally for memory wafer fabs, and claimed that if the US meets conditions such as power, water resources, land, and supply chain, they would not rule out establishing more wafer fabs there in the future.