SK Hynix Completes First Phase of $9-Billion Intel NAND Business Buy

South Korea’s SK Hynix said it has completed the first phase of acquisition of Intel’s NAND flash memory chip business after receiving regulatory approvals from eight countries, including China.

In return, SK Hynix will pay $7 billion (about Rs 52213.07 crore) out of the deal’s total $9 billion (approximately Rs 67131.09 crore) price tag, the world’s second-largest memory chip maker said in a statement on Thursday.

The deal, signed in 2020, will allow Intel To focus on your smaller but more lucrative Optane Memory business. For SK Hynix, it is its biggest acquisition to date as it seeks to boost its ability to manufacture NAND chips, which are used to store data in smartphones and data center servers.

Park Jung-ho, Vice Chairman and Co-CEO, SK Hynix, said, “This acquisition will mark a turning point for SK Hynix’s NAND Flash business to enter the global apex.”

An SK Hynix subsidiary called Solidigm, headquartered in San Jose, California, United States, will manage the newly acquired Nand Solid-state drive (SSD) business.

SK Hynix co-CEO Lee Sok-hee will be appointed Solidigm’s executive chairman, while former Intel senior vice president Rob Kruk will be appointed Solidigm’s CEO, SK Hynix said in the statement.

The second phase of the deal is expected to close in March 2025 with payment of the remaining $2 billion (about Rs 14917.5 crore), and will include SK Hynix’s acquisition of Intel’s remaining assets in the NAND business, including intellectual property. workforce, statement added.

© Thomson Reuters 2021