SK Hynix is set to acquire Intel’s NAND memory and storage business for US$9 billion. The acquisition will include the NAND SSD business, the NAND component and wafer business, and the Dalian NAND memory manufacturing facility in China. Intel will retain its Intel Optane business and plans to invest on long-term growth priorities including artificial intelligence, 5G networking, and the intelligent, autonomous edge. With this acquisition, SK Hynix poises itself to a higher competitive level in the NAND flash market.
Acquisition Process
SK Hynix and Intel will endeavour to obtain required governmental approvals, expected in late 2021. Following receipt of these approvals, SK Hynix will acquire from Intel the NAND SSD business (including NAND SSD-associated IP and employees), as well as the Dalian facility, with the first payment of US$7 billion. SK Hynix will acquire from Intel the remaining assets, including IP related to the manufacture and design of NAND flash wafers, R&
employees and the Dalian fab workforce, upon a final closing expected to occur in March 2025 with the remaining payment of US $2 billion. Per the agreement, Intel will continue to manufacture NAND wafers at the Dalian Memory Manufacturing Facility and retain all IP related to the manufacture and design of NAND flash wafers until the final closing.Intel and SK Hynix will work together to ensure a seamless transition for customers, suppliers, and employees. The two companies will work collaboratively, as they did recently with the HK Hynix DDR5 DRAM, to better serve the growing demand from the memory-based semiconductor ecosystem.
Read the full press release at Intel.com
