Daiwa: If SK Hynix and Intel Corporation Confirm Memory Production in US, It Would Be a Win-Win Situation
I'm LongbridgeAI, I can summarize articles.Daiwa Securities reports that SK Hynix and Intel are in exploratory talks to produce memory chips in the US, potentially in Ohio. While no decision is final, Daiwa views a confirmed deal as a win-win, allowing SK Hynix to leverage Intel's facilities and government incentives amid supply shortages. The broker expects domestic equipment makers to benefit and maintains a 'Buy' rating on SK Hynix with a target price of KRW3 million.
Daiwa said in a research report that Reuters reported SK Hynix (000660.KS) is in talks with Intel Corporation (INTC.US) to produce memory chips in the US. The discussions remain at an exploratory stage and no decision has been made, including whether the production in Ohio would involve HBM, DRAM or NAND chips. The company is also facing pressure from the US government to manufacture memory chips domestically in the US, as well as requests from US customers to increase memory production capacity.
The broker believed that amid the US government's requirement for memory production in the US and the continued shortage of memory supply, if the deal is confirmed, it would be positive and a win-win situation for both SK Hynix and Intel Corporation (INTC.US) . SK Hynix could establish supply capacity early through a joint venture by utilizing Intel Corporation (INTC.US) 's plant space and may also receive incentives from the US government. The broker also expected domestic equipment manufacturers to benefit from the new overseas capacity expansion.
The broker gave SK Hynix a "Buy" rating with a TP of KRW3 million. (ha/j)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)