Intel sells NAND memory division to SK Hynix for $ 9 billion | Business

THE SK Hynix announced on Tuesday (20) the purchase of division of NAND Flash memories gives Intel per $ 9 billion. With the agreement, SK Hynix will become one of the largest manufacturers of SSDs and the like in the world. Intel intends to focus its long-term efforts on areas such as artificial intelligence and 5G.

Intel SSD (image: disclosure / Intel)

Intel SSD (image: disclosure / Intel)

The deal has yet to pass regulatory approval, but once completed, SK Hynix will take over Intel’s memory factory in Dalian, China. The company will also take over design patents related to Intel’s NAND memory technologies. This, however, will continue to be in possession of Optane memory technologies.

Both parties believe that the deal will be approved by the end of 2021. On that occasion, SK Hynix will pay the first installment of the agreement, in the amount of US $ 7 billion. The remaining US $ 2 billion is expected to be transferred in 2025.

The acquisition will make SK Hynix control a division that accounted for $ 2.8 billion of Intel’s revenue in the first half of 2020. As a result, the company will become the second largest NAND Flash chip maker in the world, second only to countrywoman Samsung – both are based in South Korea.

SK Hynix SSD (image: disclosure / SK Hynix)

SK Hynix SSD (image: disclosure / SK Hynix)

Intel intends to direct the value obtained from the sale to areas that tend to present high demand in the coming years, with emphasis on artificial intelligence, 5G and edge computing. In a way, this is a movement that started last year, when Intel sold its modem division to Apple for $ 1 billion.

“This transaction will allow us to further prioritize our investments in differentiated technology with which we will be able to play a greater role in the success of our customers and offer attractive returns to shareholders,” says Bob Swan, Intel CEO.

Obviously, the company will continue to dedicate itself to the processor market.

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