Intel sells its nand memory division to SK hynix for $ 9 billion

Intel and SK hynix have agreed to sell Intel’s nand memory division for $ 9 billion, or $ 7.64 billion. Part of the transaction is Intel’s SSD division, but Optane products are excluded.

The acquisition includes Intel’s entire SSD business, including intellectual property and personnel, the nand parts division and the wafer division. Intel and SK hynix expect to receive approval for the acquisition plans from the various regulators in the US, China and South Korea by the end of 2021.

SK hynix then first pays Intel $ 7 billion, thereby acquiring the SSD division and the Chinese Dalian nand memory production facility. In March 2025, SK hynix will then pay the remaining $ 2 billion for intellectual property related to the production and design of nandflash wafers and for the transition of the workforce.

Intel emphasizes that it will keep its Optane division. Under this name, the company releases memory modules and SSDs with 3D XPoint memory, which Intel has developed together with Micron. Micron fully acquired the manufacturing facilities for 3D XPoint in 2018, but Intel continues to release products with this memory under the Optane name. Intel reports that the acquisition will allow it to focus on developments that should ensure long-term growth, such as artificial intelligence, 5g and the intelligent, autonomous edge, which means ‘end products’ in a network.

SK hynix would become the second largest producer of nand memory after Samsung. According to research firm TrendForce, SK hynix and Intel respectively occupied 11.7 and 11.5 percent of the nandflash market, measured by revenue. In particular, Intel would serve the lucrative enterprise market. Samsung has a market share of 31.4 percent, followed by Kioxia with 17.2 percent and Western Digital with 15.5 percent.