We seem to have entered a spiral of acquisitions. In the last month or so, we’ve seen Nvidia acquire ARM for $ 40 billion, Verzion buy Tracfone for $ 6 billion, and Microsoft buy ZeniMax Media for $ 7.5 billion. Another item to add to that list today is Intel which has decided to sell its NAND memory and storage business to South Korea-based SK Hynix for $ 9 billion.
For those who don’t know, SK Hynix is a semiconductor supplier offering flash memory and DRAM chips, as well as corporate security drives. It ranks second in the list of major chipmakers and third in semiconductor companies, respectively. It now plans to further improve its offering by acquiring some of Intel’s technologies and solutions.
SK Hynix acquires Intel NAND SSD
It is important to note that Intel will keep its Optane business, announced in 2017. However, the NAND SSD, the NAND component and the wafer, as well as the manufacturing business of Dalian NAND in China are sold to the Korean firm.
Following regulatory approval at the end of 2021, the first payment of $ 7 billion will be made. After that, all of the aforementioned companies and intellectual property will become the property of SK Hynix. Intel will continue its manufacturing process as usual until 2025, when the deal is expected to officially close and the remaining $ 2 billion paid.
Seok-Hee Lee, CEO of SK Hynix, said of the transaction:
I am happy to see SK hynix and Intel’s NAND division, who have led the innovation of NAND flash technology, working together to build the new future. By taking on each other’s strengths and technologies, SK hynix will proactively respond to diverse customer needs and optimize our business structure, expanding our innovative portfolio in the NAND flash market segment, which will be comparable to what we are doing. in DRAM.
SK Hynix plans to develop and enhance its own enterprise SSD portfolio using Intel technology and solutions. On the other hand, Intel plans to use the monetary proceeds from this acquisition for the growth of its long-term efforts such as AI and 5G.