SK Hynix plans to operate the acquired Intel NAND Business as independent companies
In October 2020, SK Hynix acquired Intel’s NAND flash memory and storage business, including Intel’s solid-state drive business, for US$9 billion. NAND accessories and wafer business, and Intel’s NAND flash memory chip manufacturing plant in Dalian, China but Intel will retain Optane’s business.
According to CRN reports, after SK Hynix has received these businesses from Intel, it will be operated as an independent company with its headquarters in the United States and led by Robert Crooke, senior vice president, and general manager of Intel’s NAND Products and Solutions Group. This means that after the transaction is completed in March 2025, it will become a wholly-owned subsidiary of SK Hynix, maintaining a certain degree of independence. This move will help Intel’s storage business unit retain existing corporate and government customers in the United States after changing hands.
Intel’s 3D NAND and storage business has been focusing on the server and enterprise storage markets, while SK Hynix is facing almost all storage areas, and it will inevitably lose some customers after the integration. Regarding Intel’s storage business unit as an independent entity will help reduce customer loss caused by the overlap in the storage market between the two parties, but it is uncertain whether the newly established subsidiary will continue to develop its own 3D NAND flash memory.
The terms involved in the $9 billion transactions between SK Hynix and Intel are a bit complicated, and even if you want to integrate it, it’s not easy. After obtaining approval from regulatory agencies around the world, SK Hynix will pay Intel $7 billion to purchase NAND flash memory business including Intel’s factory in Dalian, China. After the transaction is completed in March 2025, SK Hynix will pay Intel the remaining $2 billion to purchase the remaining assets. During this period, Intel’s factory will continue normal production until the contract is finally completed.
