Intel sells its nand memory division to SK hynix for $ 9 billion – IT Pro – News

Intel and SK hynix have agreed to sell Intel’s nand memory division for $ 9 billion, equivalent to $ 7.64 billion. Part of the transaction is Intel’s SSD division, but Optane products are excluded.

The acquisition includes Intel’s entire SSD business, including intellectual property and human resources, the nand parts division and the wafer division. Intel and SK hynix expect to receive approval for the acquisition plans from the various regulators in the US, China and South Korea by the end of 2021.

SK hynix will then first pay Intel $ 7 billion, thereby acquiring the SSD division and the Chinese Dalian nand memory production facility. In March 2025, SK hynix will then pay the remaining $ 2 billion for intellectual property related to the production and design of nandflash wafers and for the staff transition.

Intel emphasizes that it retains its Optane division. Under this name, the company releases memory modules and SSDs with 3D XPoint memory, which Intel has developed together with Micron. Micron fully took over the manufacturing facilities for 3D XPoint in 2018 over, but Intel continues to products with this memory under the Optane name bring out. Intel reports that the acquisition will be able to focus on developments that should ensure long-term growth, such as artificial intelligence, 5g and the intelligent, autonomous edge, which refers to ‘end products’ in a network.

SK hynix would become the second largest producer of nand memory after Samsung. According to research firm TrendForce SK hynix and Intel occupied 11.7 and 11.5 percent of the nandflash market, respectively, by revenue. In particular, Intel would serve the lucrative enterprise market. Samsung has a 31.4 percent market share, followed by Kioxia with 17.2 percent and Western Digital with 15.5 percent.

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