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Intel is selling its NAND memory business to SK Hynix

By Ng Chong Seng - on 21 Oct 2020, 12:15pm

Intel is selling its NAND memory business to SK Hynix

Intel has announced that SK Hynix is acquiring its NAND memory business.

The US$9 billion deal will see the South Korean memory semiconductor supplier taking over all of Intel’s NAND memory and storage business, and this includes Intel’s SSD business and NAND component and wafer business. Intel’s Dalian NAND memory manufacturing facility in China is also part of the deal.

However, Intel’s Optane business isn’t included in the sale. Intel says it intends to keep this as a distinct business and invest transaction proceeds in long-term growth priorities, including artificial intelligence and 5G networking.

All said, the transaction has yet to obtain governmental approvals, though Intel expects to get them by late 2021.

With the approvals, SK Hynix will first acquire Intel’s NAND SSD business and the Dalian facility. Over time, the company will take over the remaining assets, including IP related to the manufacture and design of NAND flash wafers, R&D employees and the Dalian fab workforce.

The final closing of the deal is expected in Mar 2025 when SK Hynix completes its two-part payment. So until then, Intel will continue to make NAND wafers at the Dalian plant and hold on to related IP.

Source: Intel.

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