Intel is seeking a partner to help run its upcoming Ohio fab project, with South Korean memory giant SK Hynix among those under consideration, according to a Wednesday report by Semfor citing people familiar with the matter. The government-backed chipmaker is scheduled to report second-quarter results after the closing bell on Thursday, with analysts expecting revenue of $14.45 billion and adjusted earnings of $0.22 per share. Intel's Ohio One semiconductor manufacturing campus, a nearly 1,000-acre site that broke ground in September 2022, is scheduled to go live in 2030, though the project has faced multiple delays amid weaker chip demand and cost-cutting efforts under the company's partnership with the U.S. government following a strategic stake taken last year.
Intel Considers SK Hynix for Ohio Fab Partnership
Semfor reported on Wednesday that Intel is considering a partnership rather than selling the Ohio operations, as was previously reported by a Korean news outlet. SK Hynix has denied involvement in any such talks, but the reports indicate activity in one of Intel's most crucial projects. Intel announced its Ohio One semiconductor manufacturing campus in January 2022 and said it would invest $28 billion initially to build two leading-edge chip fabrication plants in New Albany, near Columbus. Under the latest timeline, the first fab is expected to be completed in 2030 and begin operations between 2030 and 2031.
Intel shares rose 0.8% in overnight trading ahead of Thursday amid broad gains in the semiconductor space following Alphabet, Inc.'s strong quarterly results, in which the Google parent also raised its full-year capital expenditure target. Intel has been striking deals with rivals and customers alike since the U.S. government took a strategic stake in the company last year, as the Donald Trump administration pushes to bring more chipmaking operations onshore from Asia.
Intel and AMD Sign Longer-Term Deals with Chinese Customers
In a separate report in Reuters, Intel and Advanced Micro Devices are signing longer-term purchase commitments with Chinese server customers for data-centre processors as prices surge. The development signals that more customers are turning to CPUs instead of GPUs for AI workloads and are locking in orders before prices rise further due to a memory chip crunch.
Analysts Expect Intel Q2 Revenue of $14.45 Billion
Analysts expect Intel's second-quarter revenue to rise 12% to $14.45 billion and adjusted income of $0.22 per share compared to a loss of $0.10 per share last year, according to data from Koyfin. Currently, 13 out of 47 analysts rate the stock 'Buy' or higher, 31 rate it 'Hold,' and three rate it 'Sell' or lower, per Koyfin. Their average price target of $108.63 implies a 6% rise from the stock's last close. Intel stock has risen 178% year to date.
Stocktwits Sentiment for INTC Dips to Neutral
On Stocktwits, the retail sentiment for INTC dipped to 'neutral' from 'bullish' the previous day, while the 24-hour message volume rose 11%. "Alphabet's earnings are fundamentally good for Intel because Google raised its 2026 capital-spending forecast... showing that AI data-center construction and cloud demand remain very strong," a trader wrote. "Today confirm it will go up," they said, referring to the INTC stock.
FAQ
Who is Intel considering as a partner for its Ohio fab project?
Intel is considering South Korean memory giant SK Hynix among others to help run its upcoming Ohio fab project, according to a Wednesday report by Semfor citing people familiar with the matter. SK Hynix has denied involvement in any such talks.
When is Intel's Ohio fab scheduled to go live?
Intel's Ohio One semiconductor manufacturing campus is scheduled to go live in 2030. Under the latest timeline, the first fab is expected to be completed in 2030 and begin operations between 2030 and 2031. The nearly 1,000-acre site broke ground in September 2022.
What are analysts expecting for Intel's Q2 earnings?
Analysts expect Intel's second-quarter revenue to rise 12% to $14.45 billion and adjusted income of $0.22 per share compared to a loss of $0.10 per share last year, according to data from Koyfin. The company is scheduled to report results after the closing bell on Thursday.
