SK Hynix to buy Intel NAND memory and storage business for $9 billion
On Tuesday, Apple suppliers SK hynix and Intel have signed an agreement enabling SK hynix to buy Intel's NAND and storage business for $9 billion.
Included in the deal is Intel's NAND SSD business, NAND component and wafer business, and the Dalian NAND memory manufacturing facility in China. Intel will retain its Optane business, with the intention of investing transaction proceeds in long-term growth priorities.
The deal is contingent on government approvals, which are expected in late 2021. Following the deal's completion, SK hynix will obtain Intel's NAND SSD business — including the associated intellectual property and employees. SK hynix will obtain research and development employees as well as the Dalian fabrication workforce by 2025.
"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," said Seok-Hee Lee, Chief Executive Officer (CEO) of SK hynix. "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."
SK haying hopes to enhance the competitiveness of its storage solutions. It anticipates that the acquisition will enable growth in the memory ecosystem to the benefit of customers, partners, employees, and shareholders.
"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," said Intel CEO, Bob Swan. "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."
As per the agreement, Intel will continue to manufacture NAND wafers at the Dalian Memory Manufacturing Facility and retain all IP until the final closing. Intel plans to use the purchase proceeds to invest in long-term growth priorities, including artificial intelligence and 5G networking.
The deal is still subject to assorted regulatory agency approvals.