Intel launched its Optane business in 2015 and had high hopes for it. However, by 2022, Intel has rarely mentioned Optane products. On the one hand, it sold its NAND flash memory and storage business to SK Hynix for $9 billion on October 19, 2020. On the other hand, the retained Optane business is mainly for the enterprise market, and gradually fades out of the consumer market. Although Intel launched a new generation of consumer-grade hybrid storage product Optane Memory H20 last year, this M.2 SSD combines Optane technology and QLC NAND flash memory, but it is mainly provided to notebook computer manufacturers.
According to
TomsHardware, in the
second quarter earnings conference call of this year, Intel confirmed that it will officially close the Optane business, which will result in an impairment of $559 million. This is the sixth non-core business to be spun off since Pat Gelsinger took over as Intel CEO.
Intel also issued a statement to TomsHardware explaining the matter: “We continue to rationalize our portfolio in support of our IDM 2.0 strategy. This includes evaluating divesting businesses that are either not sufficiently profitable or not core to our strategic objectives. After careful consideration, Intel plans to cease future product development within its Optane business. We are committed to supporting Optane customers through the transition.”
Intel gradually downplayed its Optane business, starting with the sale of its NAND flash memory and storage business to SK Hynix. Although the related technologies and enterprise product lines are still retained, Optane’s business prospects dimmed as partner Micron sold its 3D XPoint flash memory chip plant in Lehi, Utah, to Texas Instruments, leaving Intel without its only production facility.
Intel launched the second-generation Optane product in December 2020, but the huge financial consumption of the Optane business for a long time may make Intel feel powerless. It was previously reported that the loss of the Optane business in 2020 reached $576 million, and it is estimated that the loss in 2021 may also be about $529 million.
Industry insiders said that in the past period of time, Intel has been consuming more of its existing inventory and has not made too many new flash memory chips. It is said that Intel still has a lot of inventory on hand, enough to maintain the supply of Optane products for a few years, which explains why there is a large amount of impairment of $559 million.
