Intel sells NAND memory chip business to SK Hynix for $9 billion #Breaking112
SK Hynix will acquire Intel’s NAND memory chip business, including associated manufacturing and design patents, as well as the US firm’s factory in Dalian, China, the companies said in a statement on Tuesday. Intel’s NAND flash memory products are used in devices such as smartphones, tablets and hard drives. The US company will keep Optane, its advanced memory chip technology business.
The deal is expected to close in March 2025.
Shares in SK Hynix were last down more than 2% in Seoul.
The acquisition marks the latest big tie-up in the rapidly consolidating semiconductor industry.
Intel is still an industry leader when it comes to chipmaking, and remains the only US company able to compete with TSMC and Samsung when it comes to designing, manufacturing and producing advanced chips.
But it costs a lot of money to stay at the cutting edge.
US semiconductor firms spent $72 billion on research and development and capital expenses in 2019, compared to $40 billion in 2007, according to a September report from Eurasia Group.
For Intel, the deal “will allow us to further prioritize our investments in differentiated technology where we can play a bigger role in the success of our customers and deliver attractive returns to our stockholders,” Intel CEO Bob Swan said in a statement.
For SK Hynix, acquiring part of Intel’s memory chip business will allow the South Korean company to vault from fourth place in the global rankings of NAND flash chip makers to second, just behind rival Samsung.