Until the completion of the entire transaction, Intel is expected to continue to manufacture NAND wafers at SK hynix’s Dalian memory manufacturing facility
Intel headquarters in Santa Clara, California. (Credit: Coolcaesar/Wikipedia)
South Korea-based semiconductor supplier SK hynix has closed the first phase of the $9bn acquisition of Intel’s NAND and solid-state drive (SSD) business.
The first phase of the transaction includes the acquisition of Intel’s SSD business and the Dalian NAND flash manufacturing facility in China.
It was completed after recent approval from China’s State Administration for Market Regulation.
Seoul-based SK hynix will pay an amount of $7bn for the acquisition.
The acquired SSD business will be managed by the newly set up US subsidiary of SK hynix, known as Solidigm.
Headquartered in San Jose, California, Solidigm will manage product development, manufacturing, and sales of the newly acquired SSD business.
SK hynix vice chairman and co-CEO Park Jung-ho said: “This acquisition will present a paradigm-shifting moment for SK hynix’s NAND flash business to enter the global top tier level. With this acquisition, SK hynix will be one step further in its path towards global 1st tier technology company.
“Solidigm is poised to be the world’s next big semiconductor company, which presents an unprecedented opportunity to reinvent the data memory and storage industry.”
Under the second phase, the company will purchase the remaining assets Intel’s NAND business, including IP related to the manufacture and design of NAND flash wafers, R&D employees for NAND flash wafers, the Dalian facility workforce, and the other associated tangible/intangible assets.
SK Hynix will pay $2bn for the second phase transaction, which is expected to be completed in or after March 2025.
Until the completion of the entire transaction, Intel is expected to continue to manufacture NAND wafers at SK hynix’s Dalian memory manufacturing facility and hold certain IP related to the manufacture and design of NAND flash wafers.
The US-based chipmaker intends to utilise the proceeds from the sale to deliver leadership products and advance its long-term growth priorities.