Intel announced that it sold its flash-memory business to SK Hynix from South Korea for about $9B. SK Hynix will buy most of Intel’s memory business, including the related memory manufacturing operations in Dalian, China.
To enhance the competitiveness of its NAND flash solutions
The transaction will include the Nand SSD business, the Nand component and wafer business, and the Dalian Nand memory manufacturing facility in China. Following the acquisition, Intel will retain its distinct Intel Optane business and intends to invest transaction proceeds in long-term growth priorities.
SK Hynix CEO Seok-Hee Lee talked about the acquisition, saying,
“I am pleased to see SK hynix and Intel’s NAND division, which have led the NAND flash technology innovation, work to build the new future together. 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.”
The two companies aim to obtain governmental approval of the deal by the end of 2021. SK Hynix will acquire the assets in two phases up to 2025, with the first involving a payment of $7bn and the second involving the remaining $2bn.
Bob Swan, Intel CEO said,
“I am proud of the NAND memory business we have built and believe this combination with SK hynix will grow the memory ecosystem for the benefit of customers, partners and employees. For Intel, this transaction will allow us to further prioritize our investments in differentiated technology where we can play a bigger role in the success of our customers and deliver attractive returns to our stockholders.”