Intel sells NAND memory business to SK Hynix
The sale includes the solid-state disk (SSD) business, NAND component and NAND wafer business, but Intel will retain its Optane business that is based on the chalcogenide phase-change memory known as 3D Xpoint.
The deal is dependent on government approvals which the two companies said they expect to receive in late 2021.
After approval is obtained the deal will commence with a payment of US$7 billion by SK Hynix where it will receive NAND-SSD intellectual property and employees as well as the Dalian facility. The remaining assets including NAND flash wafer IP, the Dalian workforce and R&D employees will transfer upon a final closing and payment of the remaining US$2 billion, which is not expected until March 2025.
Under this staged agreement Intel will continue to manufacture NAND wafers at Dalian and retain its IP until the final closing.
SK benefits from economies of scale in NAND flash memory business. In the first six months of 2020 NAND businesses generated US$2.8 billion of revenue
Intel said it would use the proceeds of the sale to invest in long-term growth priorities, including artificial intelligence, 5G networking and the intelligent, autonomous edge.
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