SK hynix pays US $9 billion for the Intel NAND memory and storage enterprise, which includes the NAND SSD enterprise, the NAND part and wafer enterprise, and the Dalian NAND memory manufacturing facility in China. SK hynix goals to enhance the competitiveness of its NAND flash solutions as one of many leading global semiconductor corporations and develop the memory ecosystem to the benefit of consumers, companions, workers and shareholders. Intel will retain its Intel® Optane™ enterprise and intends to take a position transaction proceeds in lengthy-term progress priorities. SK hynix will pay US $9 billion for the Intel NAND memory and storage enterprise, which incorporates the NAND SSD enterprise, the NAND element and wafer business, and the Dalian NAND memory manufacturing facility in China. SK hynix goals to reinforce the competitiveness of its NAND flash solutions as one of many main international semiconductor firms and grow the memory ecosystem to the benefit of consumers, brainwave audio program companions, staff and shareholders. Intel will retain its Intel® Optane™ business and intends to take a position transaction proceeds in lengthy-term development priorities.
SK hynix and Intel today introduced that they've signed an settlement on Oct. 20, KST, underneath which SK hynix would purchase Intel’s NAND memory and storage enterprise for US $9 billion. The transaction includes the NAND SSD business, the NAND element and wafer enterprise, 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 business (including NAND SSD-related IP and workers), as effectively because the Dalian facility, with the primary fee of US $7 billion. SK hynix will acquire from Intel the remaining belongings, together with IP related to the manufacture and design of NAND Memory Wave flash wafers, R&D employees, and the Dalian fab workforce, upon a final closing, expected to occur in March 2025 with the remaining payment of US $2 billion. Per the agreement, Intel will continue to manufacture NAND wafers on the Dalian Memory Manufacturing Facility and retain all IP related to the manufacture and design of NAND flash wafers until the final closing.
With this acquisition, Memory Wave SK hynix aims to reinforce the competitiveness of its storage options, together with enterprise SSDs, in the quickly growing NAND flash area, and additional goals to leap ahead as one of the leading global semiconductor corporations within the trade. SK hynix expects that the transaction would enable SK hynix to develop the memory ecosystem to the benefit of consumers, companions, workers and shareholders. As the global chief within the semiconductor business, Intel possesses trade-leading NAND SSD know-how and quadruple stage cell (QLC) NAND flash merchandise. For the first six months ended June 27, 2020, the NAND businesses represented roughly US $2.8 billion of the revenue for Intels Non-risky Memory Solutions Group (NSG) and contributed roughly US $600 million to NSG working earnings. SK hynix developed the world’s first Charge Trap Flash (CTF)-primarily based, 96-layer 4D NAND flash in 2018 and 128-layer 4D NAND flash in 2019. SK hynix will combine Intels solutions technology and manufacturing capability so as to ascertain a higher value-added 3D NAND solutions portfolio including enterprise SSDs.
Intel intends to speculate transaction proceeds to ship management products and advance its long-time period growth priorities, together with artificial intelligence, 5G networking and the clever, autonomous edge. Intel and SK hynix will work together to ensure a seamless transition for purchasers, suppliers and staff. The two companies will work collaboratively as they did recently with DDR5, to higher serve the growing demand brainwave audio program from the memory-based mostly semiconductor ecosystem. "I am pleased to see SK hynix and Intel`s NAND division, which have led the NAND flash technology innovation, work to construct the new future collectively," stated Seok-hee Lee, Chief Government Officer (CEO) of SK hynix. Bob Swan, Intel CEO said, "I am pleased with the NAND memory enterprise we have now constructed and imagine this combination with SK hynix will grow the memory ecosystem for the benefit of consumers, companions and employees. Citi served as monetary advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Okay&C and Fangda Partners served as legal counsel to SK hynix.