Two months ago, Intel announced a preliminary deal to make computer chips for Apple products, according to national and local sources. It was important and positive news for the company whose fabrication operation in New Albany had been delayed by years because it could not find customers for its microchips.
Now there's potentially more good news.
According to a story published July 22 in Semafor, a global news organization, Intel is considering a partnership with a South Korean company looking to use a portion of the New Albany operation to to produce memory chips for its own customers.
Reports that SK Hynix was planning to purchase outright the semiconductor campus operated by Santa Clara, Calif.-based Intel have been disputed, according to the reporting
including a denial by SK Hynix.
Ohio Sen. Jon Husted said he's aware of the report. But could not verify details.
"Intel reached out to inform me that they have a potential partner that is going to work with them," Husted said. "And if the deal comes through it could hasten the build-out of these fabs (fabrication plants) and could also create the demand for additional fabs."
"This is good news for job creation and investment in central Ohio.".
According to the reports, Intel has not entered formal negotiations about an operating deal.
The inclusion of Apple, one of the world's biggest microchip customers, as a customer for Intel helped validate Intel's local operation, even as it's been delayed. The company has continued to set 2032 as its completion date.
Shortly after ground was broken and work begun in September, 2022 on the now $28 billion New Albany project, there was uncertainty about who would be purchasing microchips, or integrated circuits, that power everything from modern cars to home appliances and military arsenals, The Dispatch reported.
Intel has worked out a formal deal to produce microchips for Apple, following "intensive talks for more than a year," the Wall Street Journal reported in May. The arrangement was supported by the U.S. Commerce Department and development officials as a way to shore up U.S. chip production — considered a priority for both economic and national security reasons.
Husted said any new partner interested in using part of the Intel plant would be welcomed.
"You can't build something until you have demand," he said. "There's a need for fabrication space in America and Intel has the shell in place to provide it."
"The site is ready to go. You want to use the productivity that you have," Husted said, signaling that "they are going to hasten the construction of the fabs sooner rather than later."
Growth and development reporter Dean Narciso can be reached at dnarciso@dispatch.com.
This article originally appeared on The Columbus Dispatch: Intel found a customer. It may now have a partner for its Ohio plants
