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

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South Korea’s SK Hynix mentioned it had accomplished the primary part of its acquisition of Intel’s NAND flash reminiscence chip enterprise, after it obtained regulatory nods from eight international locations together with China.

In change, SK Hynix can pay $7 billion (roughly Rs. 52213.07 crore) out of the deal’s whole $9 billion (roughly Rs. 67131.09 crore) price ticket, the world’s second-largest reminiscence chip maker mentioned in a press release on Thursday.

The deal, signed in 2020, will enable Intel to concentrate on its smaller however extra profitable Optane reminiscence enterprise. For SK Hynix, it’s the greatest acquisition ever because it seeks to spice up its capability to construct NAND chips, used to retailer information in smartphones and information centre servers.

“This acquisition will present a paradigm shifting moment for SK Hynix’s NAND flash business to enter the global top tier level,” mentioned Park Jung-ho, Vice Chairman and Co-CEO of SK Hynix.

A SK Hynix subsidiary referred to as Solidigm, headquartered in San Jose, California, United States, will handle the newly acquired NAND solid-state drive (SSD) enterprise.

SK Hynix co-CEO Lee Seok-hee shall be appointed govt chairman of Solidigm, whereas Rob Crooke, former senior vp of Intel, shall be appointed CEO of Solidigm, SK Hynix mentioned within the assertion.

The second part of the deal is predicted to shut in or after March 2025 together with the cost of the remaining $2 billion (roughly Rs.14917.5 crore), and can embrace SK Hynix’s acquisition of Intel’s remaining belongings within the NAND enterprise together with mental property and workforce, the assertion added.

© Thomson Reuters 2021

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