$9 billion deal: SK Hynix acquires Intel’s NAND flash memory business
Intel Corporation continues to get rid of less profitable businesses. Last year it agreed with Apple to sell the modem division for $1 billion, and today it became known about the signing of an agreement with the company SK Hynix, under which the South Korean chip maker will be transferred to Intel’s business related to the production of NAND flash memory. The amount of the deal will be nine billion dollars.
According to the contract, the whole process will take about five years. After the approval of the regulatory authorities under the wing of SK Hynix will move Intel factory in the Chinese city of Dalian, as well as related intellectual property. This will happen closer to the end of 2021, after which the Koreans will pay the “blue” chip maker $7 billion.
It should be noted that the deal between Intel and SK Hynix only affects NAND memory. The processor giant will retain the 3D XPoint non-volatile memory technology developed together with Micron Technology, as well as the associated Optane brand.
Until March 2025, Intel will be able to continue manufacturing NAND chips at a facility formally owned by SK Hynix. Later on, the South Korean firm will transfer the remaining $2 billion to Intel, concluding the transaction and obtaining all other assets, including experience in designing and manufacturing NAND wafers.