SK Hynix To Amass Intel NAND Memory Business

SK hynix pays US $9 billion for the Intel NAND memory and storage business, which includes the NAND SSD business, the NAND element and wafer enterprise, and the Dalian NAND memory manufacturing facility in China. SK hynix goals to enhance the competitiveness of its NAND flash solutions as one of the main global semiconductor corporations and grow the memory ecosystem to the benefit of shoppers, companions, employees and shareholders. Intel will retain its Intel® Optane™ enterprise and intends to invest transaction proceeds in lengthy-time period growth priorities. SK hynix will pay US $9 billion for the Intel NAND memory and storage enterprise, which incorporates the NAND SSD enterprise, the NAND element and wafer business, and the Dalian NAND memory manufacturing facility in China. SK hynix aims to enhance the competitiveness of its NAND flash solutions as one of many main global semiconductor firms and develop the memory ecosystem to the profit of customers, partners, staff and shareholders. Intel will retain its Intel® Optane™ enterprise and MemoryWave Official intends to invest transaction proceeds in lengthy-time period growth priorities.



SK hynix and Intel right now introduced that they've signed an settlement on Oct. 20, KST, under which SK hynix would acquire Intel’s NAND memory and storage enterprise for US $9 billion. The transaction consists of the NAND SSD business, the NAND component and wafer enterprise, and the Dalian NAND Memory Wave manufacturing facility in China. Intel will retain its distinct Intel® OptaneTM business. SK hynix and Intel will endeavor to obtain required governmental approvals anticipated in late 2021. Following receipt of these approvals, SK hynix will acquire from Intel the NAND SSD enterprise (together with NAND SSD-related IP and workers), as effectively because the Dalian facility, with the primary cost of US $7 billion. SK hynix will purchase from Intel the remaining assets, including IP associated to the manufacture and design of NAND flash wafers, R&D employees, and the Dalian fab workforce, upon a remaining closing, anticipated to happen in March 2025 with the remaining payment of US $2 billion. Per the settlement, Intel will continue to manufacture NAND wafers at the Dalian Memory Manufacturing Facility and retain all IP related to the manufacture and design of NAND flash wafers till the ultimate closing.



With this acquisition, SK hynix goals to boost the competitiveness of its storage solutions, together with enterprise SSDs, within the quickly growing NAND flash house, and additional goals to leap ahead as one of the main international semiconductor firms in the trade. SK hynix expects that the transaction would allow SK hynix to grow the memory ecosystem to the profit of consumers, companions, employees and shareholders. As the global chief within the semiconductor business, Intel possesses business-leading NAND SSD expertise and quadruple stage cell (QLC) NAND flash products. For the primary six months ended June 27, 2020, the NAND businesses represented roughly US $2.Eight billion of the revenue for Intel`s Non-unstable Memory Options Group (NSG) and contributed roughly US $600 million to NSG operating income. SK hynix developed the world’s first Charge Trap Flash (CTF)-based mostly, 96-layer 4D NAND flash in 2018 and 128-layer 4D NAND flash in 2019. SK hynix will mix Intel`s options know-how and manufacturing capability so as to determine a higher worth-added 3D NAND solutions portfolio including enterprise SSDs.



Intel intends to speculate transaction proceeds to deliver management products and advance its lengthy-term progress priorities, including synthetic intelligence, 5G networking and the clever, autonomous edge. Intel and Memory Wave SK hynix will work collectively to ensure a seamless transition for purchasers, suppliers and employees. The two companies will work collaboratively as they did recently with DDR5, to better serve the rising demand from the memory-based mostly semiconductor ecosystem. "I am pleased to see SK hynix and Intel`s NAND division, which have led the NAND flash technology innovation, work to construct the brand new future together," stated Seok-hee Lee, Chief Executive Officer (CEO) of SK hynix. Bob Swan, Intel CEO said, "I am pleased with the NAND memory enterprise we've built and imagine this mixture with SK hynix will develop the memory ecosystem for the profit of shoppers, companions and workers. Citi served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Okay&C and Fangda Companions served as authorized counsel to SK hynix.