Daily Management Review

Intel sells flash memory factory to South Korean SK Hynix for $9B


Intel is selling its flash memory chip business to South Korea's SK Hynix (part of the SK Group). The contract is going to be $9 billion in all.

TAKA@P.P.R.S via flickr
TAKA@P.P.R.S via flickr
The American company sells its NAND SSD business, its NAND manufacturing wafers and parts, as well as its factory in Dalian, China. 

The organization is therefore divesting non-core properties to concentrate on more sophisticated technologies such as Optane memory, built in conjunction with Micron Technology. SK Hynix will pay for the deal, as stated in the press release, in two phases: the first payment will be $7 billion and will finance the sale of SSD chip-related properties.

After the deal is completed, the remainder of the amount will be charged, and the South Korean corporation will assume ownership of the remaining properties. The parties have the goal of signing the agreement by March 2025. 

With this purchase, SK Hynix will become the world's second largest NAND chip maker. Samsung is the industry leader with a market share of 31.4 percent, according to Trendforce; next come Kioxia (17.2 percent), SK Hynix (11.7 percent), as well as Intel and Micron (11.5 percent each). The share of SK Hynix will hit 23.2 percent after the deal with Intel is concluded.

source: reuters.com