South Korean reminiscence chip maker SK Hynix will purchase Intel’s NAND reminiscence and storage enterprise for $9 billion, the pair introduced on Tuesday.
The deal contains the US chip big’s NAND SSD enterprise, NAND element and wafer enterprise, and its NAND reminiscence chip facility in Dalian, China.Â
Intel’s Optane reminiscence enterprise was not a part of the deal, nonetheless, and can stay with the US firm.
The pair are actually looking for to acquire authorities approvals, that are anticipated to finalised by late 2021.
If the approvals are accepted, SK Hynix would make an preliminary fee of $7 billion to amass Intel’s NAND SSD enterprise, which incorporates IP, workers, and the Dalian facility.
Following the preliminary fee, SK Hynix would then purchase the US chip big’s remaining belongings — IP associated to the manufacturing and design of NAND flash wafers, analysis workers, and the Dalian manufacturing facility employees — via a remaining fee of $2 billion, which is offered in March 2025.
Within the meantime, Intel will proceed to supply wafers at its Dalian facility and retain its IP till the ultimate closing.
In an announcement, SK Hynix stated buying Intel’s NAND SSD know-how and quadruple degree cell NAND flash merchandise would improve the competitiveness of its storage options, particularly its enterprise SSDs.
Intel’s NAND companies contributed $600 million in working earnings and $2.eight billion in gross sales to its non-volatile reminiscence options group through the first six months of 2020, the pair stated.
In the meantime, Intel stated it plans to speculate the deal’s proceeds into numerous synthetic intelligence, 5G, and clever, autonomous edge capabilities.
If the deal is accepted, SK Hynix would change into the world’s second-largest NAND Flash maker after Samsung, the undisputed chief within the sector. For the reason that COVID-19 pandemic, SK Hynix and Samsung have each seen a surge in demand for NAND flash reminiscence from PCs and servers.
In response to market analysis agency TrendForce, Samsung held a 31.four% share of the NAND flash market within the second quarter, adopted by Kioxia’s 17.2%, and Western Digital’s 15.5%. SK Hynix was ranked fourth with a share of 11.7% and Intel positioned sixth with 11.5%.
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