European Commission has approved SK Hynix to acquire Intel NAND and SSD business

SK Hynix acquired Intel NAND flash memory and storage business for $9 billion in October 2020. The acquisition includes Intel’s solid-state drive business, NAND accessories and wafer business, and Intel’s NAND flash memory chip manufacturing plant, but Intel will retain the Optane business.

According to Guru 3D, SK Hynix is ​​one step closer to acquiring Intel’s NAND flash memory and storage business and has now passed the approval of the European Commission. In addition, the US Federal Trade Commission approved the transaction last year, and it was also approved by the Committee on Foreign Investment in the United States (CFIUS) in March of this year. The UK Competition and Markets Authority (CMA) is still investigating the acquisition, and the first phase of the investigation is underway.


Image: skhynix

According to statistics from TrendForce, SK Hynix and Intel together account for about 20% of the global NAND flash memory market. If SK Hynix can maintain such a market share after the acquisition, it will become the world’s second or third largest flash memory supplier. SK Hynix hopes that this transaction can better develop its own flash memory business and benefit customers, partners, employees, and shareholders. Recently, SK Hynix officially stated that it will continue to increase investment in research and development of new technologies while increasing production capacity to occupy more market share.

SK Hynix and Intel expect to obtain approvals from all regulatory agencies in 2021 to facilitate transactions in accordance with the schedule. After approval, SK Hynix will pay Intel $7 billion to purchase the NAND flash memory business. The transaction is expected to be completed in March 2025, when SK Hynix will pay Intel the remaining 2 billion US dollars to purchase the remaining assets. At the same time, Intel’s factories will continue normal production until the contract is finally completed.