Intel has announced the sale of its NAND memory and storage business to SK hynix for US$ 9 billion. Over the next five years, the South Korean company will take over the American company’s NAND memory business which includes the NAND SSD business, NAND component and wafer business, and the Dalian NAND memory manufacturing facility in China. The transaction excludes the Optane Business, which Intel will retain.
Subject to government approvals, the deal between SK hynix and Intel is expected to be completed in late 2021. Once the deal is approved by the necessary authorities, SK hynix will initially pay the sum of US$ 7 billion to Intel for the NAND SSD business (including IP and employees) and the Dalian manufacturing facility. The remaining assets will be transferred to SK hynix in March 2025 for a final sum of US$ 2 Billion.
Commenting on the acquisition, chief executive officer (CEO) of SK hynix, Seok-Hee Lee said;
“By taking each other’s strengths and technologies, SK hynix will proactively respond to various needs from customers and optimize our business structure, expanding our innovative portfolio in the NAND flash market segment, which will be comparable with what we achieved in DRAM.”
Under the terms, Intel will continue to use the Dalian facility and retain the IP to design and manufacture NAND flash wafers until March 2025. Both companies are also dedicated to ensuring the smooth transition of customers, employees, and suppliers, as well as working together to serve the growing demand for memory-based semiconductor ecosystem.
Source: Intel
Cover Image: KoreaTechToday
