SK hynix announced on Tuesday that it would acquire Intel‘s NAND memory and storage business in a 10.3 trillion won ($9 billion) deal, making it the second-largest NAND flash memory maker globally.
SK hynix signed the agreement with the U.S. tech giant acquiring all of Intel’s NAND SSD business, the NAND component and wafer business, and a China-based NAND memory manufacturing facility.
The SK Group affiliate said that the acquisition would consist of SK hynix initially paying around 8 trillion won ($7 billion) for Intel’s facility in China by 2021. Intel, however, would keep hold of its separate Intel Optane memory storage business.
Along with Intel, SK hynix said that it would strive to obtain the required government sanctions and policies by 2021. The company would acquire Intel’s NAND SSD business and the Dalian facility after completion of government requirements.
Enhancing Global Competitiveness
Lee Seok-hee, SK hynix’s CEO, stated that the acquisition would enhance SK hynix’s storage solutions to customer needs. Intel’s strengths and technologies would also innovate and strengthen its portfolio in the rapidly growing NAND flash market sector.
Omdia, a market researcher, stated that Sky Hynix currently holds an 11.4 percent market share while Intel holds the fourth-largest market share of 11.5 percent in the NAND sector. The deal would make SK Hynix the second-largest NAND memory provider with a market share of over 19 percent.
The company created the first Charge Trap Flash-based, 96-layer 4D NAND flash in 2018, and a 128-layer 4D NAND flash in 2019.
SK Hynix expects to carry out the acquisition, with the final payment of around 2.3 trillion won ($2 billion) in March 2025. The company would control Intel’s NAND business assets, intellectual property related to manufacturing, and NAND flash wafers’ design. Intel’s research and development employees and workforce from the Dalian facility would transfer to SK hynix upon completing the acquisition.
Intel would still manufacture NAND wafers and maintain intellectual property of NAND flash wafers’ manufacture and design until March 2025.
Bob Swan, Intel CEO, stated that he feels proud of Intel’s NAND memory business. Swan believes that combining SK hynix and Intel’s expertise would develop the memory industry and benefit customers, employees, and partners.
Intel intends to invest in long-term priorities, including artificial intelligence, smart and autonomous technology, and 5G networking after the acquisition.
