SK Hynix Takes First Step to Acquire NAND Portfolio from Intel

South Korean chip maker SK Hynix has taken a first step in acquiring Intel’s NAND flash memory portfolio. SK Hynix has now received approval from all global regulators.

According to Reuters the South Korean chip manufacturer can now concrete the acquisition of Intel’s NAND flash memory business. The global regulators, such as China’s, which were still able to raise objections, have now all agreed.

Part of the first phase, so gives the statement of the South Korean manufacturer is the payment of an amount of 6.1 billion euros (7 billion dollars) as part of the total amount of almost 8 billion euros (9 billion dollars).

Expanding NAND production capacity

By divesting its NAND business, Intel plans to focus more on its more revenue-generating Optane memory chips. SK Hynix sees an opportunity to further expand NAND chip manufacturing capabilities with the purchase of Intel’s NAND business. These chips are mainly used for storing data in smartphones and data center servers.

Intel’s NAND flash memory and SSD solutions business acquired by SK Hynix will be transferred to a separate company; Solidigm.

Second stage

The plans for the second phase of the acquisition have now also been announced. In this final phase, the remaining 1.7 billion euros (2 billion dollars) will be paid. This phase includes Intel’s latest NAND technology assets, such as intellectual property and the employees being acquired. This second phase must be completed by March 2025 at the latest.