Intel sold the Nand memory unit to South Korea’s SK Hynix for a deal said to be worth around $ 9 billion. The deal represents a big blow to SK Hynix which will pay 10.3 trillion won in South Korean currency for the Intel unit, which produces flash memory components for computers and other devices.
The acquisition is important and will take place in stages over the next few years and through 2025. Under the agreement, SK Hynix will acquire Intel’s solid state drive and NAND storage business, along with a manufacturing facility in the northeast Chinese city of Dalian.
The chip maker will pay 10.3 trillion won for the Intel drive, which makes flash memory components for computers and other devices. The acquisition, which will take place in stages through 2025, includes Intel’s solid-state drive, NAND flash and wafer business, as well as a manufacturing facility in the city of Dalian in northeastern China.
For Intel, this deal will allow the company to get out of a business it found difficult to manage and, more importantly, allow the chip maker to focus on its core chip design business.
With the deal in place, Intel will completely exit the NAND flash SSD business. However, Intel will keep its Optane and IP memory business, which is honestly more of a favorite project for Intel than one it tries to make a lot of money from.
In a statement to Tom’s Hardware, Intel CEO Bob Swan 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 technologies in which we can play a more important role in the success of our customers and deliver attractive returns to our shareholders. “
With the move, SK Hynix will now be in a better position to take the battle to Samsung in the NAND module industry. At present, Samsung currently dominates the SSD market. However, after acquiring the donkeys, SK Hynix would have a big chunk of the market share that will only be slightly smaller than Samsung and Western Digital.
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With the deal in place, Intel will completely exit the NAND flash SSD business and shift focus to its core businesses.
- Intel has announced the sale of its SSD and NAND flash businesses.
- It will sell the assets to SK Hynix for $ 9 billion.
- The sale will allow Intel to focus on its core businesses.