Intel Corp has agreed to sell its NAND memory chip business to SK Hynix Inc for USD 9 Billion

CIOReviewIndia Team | Tuesday, 20 October 2020, 04:34 IST

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Intel Corp has agreed to sell its NAND memory chip business to SK Hynix Inc for USD 9 Billion

In an all-cash deal that would propel the South Korean chipmaker to second in the global rankings, Intel Corp INTC.O has agreed to sell its NAND memory chip business to SK Hynix Inc 000600.KS for $9 billion. 

Tapping towards more advanced technology, this move will mark towards focusing on its remaining Optane memory business, which is smaller but more lucrative; divesting its non-core businesses to move away from the volatile commodity NAND chip industry. 

While  for SK Hynix, it is the biggest acquisition to date and follows its $3.7 billion investment in Japanese rival Kioxia in 2017. 

“Shareholders are negative about the deal because they believe the price is too expensive. It’s good news for other memory chipmakers, because the move would lead to industry consolidation,” said Lee Seung-woo, an analyst at Eugene Investment & Securities.

Furthermore, SK Hynix has said that Intel would sell all of its NAND business including its NAND component, solid-state drive business, wafer operation, and also its factory in Dalian, China.

Intel would keep its advanced Optane memory technology which was developed in partnership with Micron Technology Inc MU.O. 

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