SK hynix can pay US $9 billion for the Intel NAND memory and storage business, which includes the NAND SSD business, the NAND part and wafer business, and the Dalian NAND memory manufacturing facility in China. SK hynix aims to boost the competitiveness of its NAND flash options as one of the main international semiconductor firms and grow the memory ecosystem to the profit of customers, companions, workers and shareholders. Intel will retain its Intel® Optane™ business and intends to invest transaction proceeds in long-term development priorities. SK hynix can pay US $9 billion for the Intel NAND memory and storage enterprise, which incorporates the NAND SSD enterprise, the NAND part and wafer business, and the Dalian NAND memory manufacturing facility in China. SK hynix goals to enhance the competitiveness of its NAND flash options as one of many main international semiconductor MemoryWave Official firms and grow the memory ecosystem to the profit of consumers, companions, employees and shareholders. Intel will retain its Intel® Optane™ business and intends to invest transaction proceeds in lengthy-term growth priorities.
SK hynix and Intel at present announced that they've signed an settlement on Oct. 20, KST, below which SK hynix would purchase Intel’s NAND memory and storage business for US $9 billion. The transaction contains the NAND SSD enterprise, the NAND component and wafer business, and the Dalian NAND memory manufacturing facility in China. Intel will retain its distinct Intel® OptaneTM enterprise. SK hynix and Intel will endeavor to obtain required governmental approvals anticipated in late 2021. Following receipt of these approvals, SK hynix will purchase from Intel the NAND SSD enterprise (together with NAND SSD-related IP and employees), as well because the Dalian facility, with the first fee of US $7 billion. SK hynix will acquire from Intel the remaining belongings, including IP related to the manufacture and design of NAND flash wafers, R&D staff, and the Dalian fab workforce, upon a last closing, expected to occur 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 final closing.
With this acquisition, SK hynix aims to reinforce the competitiveness of its storage options, including enterprise SSDs, in the quickly rising NAND flash space, and MemoryWave Official further aims to leap ahead as one of many leading international semiconductor firms within the business. SK hynix expects that the transaction would allow SK hynix to develop the memory ecosystem to the benefit of consumers, partners, workers and shareholders. As the global chief in the semiconductor business, Intel possesses trade-leading NAND SSD know-how and quadruple level cell (QLC) NAND flash merchandise. For the primary six months ended June 27, 2020, the NAND companies represented roughly US $2.Eight billion of the revenue for Intels Non-unstable Memory Solutions Group (NSG) and contributed approximately US $600 million to NSG operating earnings. SK hynix developed the world’s first Charge Lure Flash (CTF)-primarily based, 96-layer 4D NAND flash in 2018 and 128-layer 4D NAND flash in 2019. SK hynix will mix Intels options expertise and manufacturing functionality so as to ascertain a better worth-added 3D NAND options portfolio together with enterprise SSDs.
Intel intends to speculate transaction proceeds to ship leadership merchandise and advance its lengthy-time period growth priorities, including artificial intelligence, 5G networking and the clever, autonomous edge. Intel and SK hynix will work collectively to make sure a seamless transition for purchasers, suppliers and employees. The two corporations will work collaboratively as they did not too long ago with DDR5, to better serve the growing demand from the memory-based mostly semiconductor ecosystem. "I am happy to see SK hynix and Intel`s NAND division, which have led the NAND flash expertise innovation, work to build the new future together," said Seok-hee Lee, Chief Government Officer (CEO) of SK hynix. Bob Swan, Intel CEO stated, "I am happy with the NAND memory enterprise we've got constructed and consider this mixture with SK hynix will grow the memory ecosystem for the benefit of shoppers, partners 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.