SK Hynix to buy Intel’s NAND memory and storage business for $9bn

SK Hynix, a South Korean semiconductor company, has agreed to acquire Intel‘s NAND memory and storage business for $9 billion.

The deal includes the NAND SSD business, the NAND component, and wafer business, along with the Dalian NAND memory manufacturing facility in China. However, Intel will retain its Intel Optane business.

SK Hynix by acquiring the assets is looking to improve the competitiveness of its storage solutions, including enterprise SSDs, in the quickly growing NAND flash space. The South Korean firm is also looking to move forward as one of the major global semiconductor suppliers in the industry.

In 2018, SK hynix developed what was the world’s first Charge Trap Flash (CTF)-based, 96-layer 4D NAND flash and a year later came up with hte 128-layer 4D NAND flash.

The South Korean semiconductor company intends to combine Intel’s solutions technology and manufacturing capability for establishing a higher value-added 3D NAND solutions portfolio, which includes enterprise SSDs.

Intel to sell its NAND memory and storage business to SK Hynix. Photo courtesy of Coolcaesar/Wikipedia.org.

Seok-Hee Lee – CEO of SK Hynix said: “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.”

Intel, on the other hand, will use the proceeds from the transaction for delivering leadership products and advance its long-term growth priorities such as artificial intelligence, 5G networking and also the intelligent, autonomous edge.

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.”

SK hynix and Intel will seek obtaining the necessary governmental approvals by late 2021.