Intel nears deal to sell NAND memory unit to South Korea's SK Hynix for around $10 billion: source

guest · Oct 19, 2020

Intel nears deal to sell NAND unit to South Korea's SK Hynix: source
October 19, 2020
https://www.reuters.com/article/us-...to-south-koreas-sk-hynix-source-idUSKBN2742IY

Intel Corp is preparing to sell its NAND memory chip business to South Korean chipmaker SK Hynix Inc for around $10 billion in an all-cash transaction, a source familiar with the matter said on Monday.

Intel would sell its solid-state drive business in the United States and its factory in Dalian, China, which produces advanced flash memory, referred to as 3D NAND, the source told Reuters. The company would keep XPoint, its advanced memory technology unit.
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The Wall Street Journal reported earlier in the day that the deal could be announced as soon as Monday. Intel’s shares were up nearly 3% after the report.
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guest · Oct 20, 2020

mood said: ↑

Intel nears deal to sell NAND unit to South Korea's SK Hynix: source October 19, 2020
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Updated article (October 20, 2020):

South Korea's SK Hynix to buy Intel's NAND business for $9 billion
Intel Corp INTC.O has agreed to sell its NAND memory chip business to SK Hynix Inc 000660.KS for $9 billion in an all-cash deal that would propel the South Korean chipmaker to second in the global rankings.

The move marks the latest effort by the U.S. chip giant to divest its non-core businesses, move away from the volatile commodity NAND chip industry and focus on its remaining Optane memory business, which is smaller but more lucrative because it taps more advanced technology.
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It is the biggest acquisition to date for SK Hynix and follows its $3.7 billion investment in Japanese rival Kioxia in 2017, as the Korean firm tries to boost its capacity to build NAND chips - used to store data in smartphones and data centre servers - and beef up its pricing power.

With the acquisition, SK Hynix, part of South Korean conglomerate SK Group, will have a market share of 23.2%.

“Although the competitive environment surrounding us is not easy, we have made a bold decision to pave the way for our leap toward securing a firm position in the NAND business as in DRAM,” SK Hynix President and CEO Lee Seok-hee said in a statement.
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guest · Jul 30, 2021

UK regulator waves through SK Hynix's $9bn acquisition of Intel's NAND and SSD biz
Number of 'strong remaining competitors' within the market planning expansions of their own, says CMA
July 30, 2021
https://www.theregister.com/2021/07/30/cma_intel_sk_hynix/

The UK's Competition and Markets Authority (CMA) has given the thumbs-up to SK Hynix's agreed $9bn purchase of Intel's NAND and SSD businesses, ruling that the buyout would have no negative impact on local purchasers.

Using its own CMA lingo, the regulator said it wanted to know if the result of the agreement would lead to a "substantial lessening of competition within any market or markets in the United Kingdom for goods or services."
In particular, it was concerned about the possible overlap in the supply of NAND flash memory and solid-state drives.

But after carrying out an investigation, it found that these concerns did not stack up.
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At the end of the 31-page ruling, Eleni Gouliou, director of mergers at the CMA, signed off saying: "The CMA does not believe that it is – or may be the case – that the Merger may be expected to result in an SLC [significant lessening of competition] within a market or markets in the United Kingdom."
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guest · Dec 23, 2021

SK Hynix gets China approval to take over Intel’s NAND business
December 22, 2021

South Korean chipmaker SK Hynix said on Wednesday it has received merger clearance from the Chinese antitrust authority for its $9 billion acquisition of Intel Corp’s NAND and SSD (solid-state drive) business, clearing the final hurdle to completion of securing regulatory approval in eight jurisdictions.

Last October, the U.S. chip giant and SK Hynix reached the acquisition deal. Following the agreement, SK Hynix obtained nods from watchdog agencies in South Korea, the U.S., the European Union, Taiwan, Brazil, Britain and Singapore.
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SK Hynix said in its statement:

“SK Hynix sincerely welcomes and appreciates the State Administration of Market Regulation’s merger clearance for the deal. SK Hynix will enhance its competitiveness of NAND Flash and SSD business by continuing the remaining post-merger integration process.”
The acquisition, which is SK Hynix’s largest acquisition deal, will help SK Hynix to expand its NAND SSD business and narrow the gap with market leader Samsung Electronics.

China’s State Administration for Market Regulation said in its statement on Wednesday that it had approved, but with a number of conditions that will last for five years.
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guest · Dec 30, 2021

Intel closes on first phase to sell SSD business to SK Hynix
Intel collects $7 billion, with an additional $2 billion coming in 2025
December 30, 2021

Why it matters: Intel has completed the first step of its transaction to sell its solid-state drive business to SK Hynix. The deal, if you recall, was announced in October 2020. At the time, Intel agreed to jettison its NAND SSD business, its NAND component and wafer business, and its Dalian NAND memory manufacturing facility in China for a total of $9 billion.

This first phase will see SK Hynix hand over $7 billion, with Intel retaining certain IP related to the manufacture and design of NAND flash wafers. The chipmaker will be able to continue to use the Dalian facility to manufacture wafers until the final closing, which is expected to take place no sooner than March 2025.
Upon final closing, SK Hynix will take over of the remaining SSD assets from Intel, including R&D employees, for an additional $2 billion.
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Intel: Intel Sells SSD Business and Dalian Facility to SK hynix

Intel Corp. completes its first closing in the sale of its NAND and SSD business to SK hynix.
Intel will continue to manufacture NAND wafers at SK hynix’s Dalian memory manufacturing facility and retain certain IP related to the manufacture and design of NAND flash wafers until the final closing of the transaction. The final closing is expected to occur in or after March 2025, when SK hynix will acquire from Intel the remaining NAND business assets, including certain IP related to the manufacture and design of NAND flash wafers, R&D employees and the Dalian fab workforce, for US$2 billion.

The SSD business will transition to a newly formed company, Solidigm, a subsidiary of SK hynix. Solidigm, whose name reflects a new paradigm in solid-state storage, will name Robert (Rob) B. Crooke as CEO. Crooke was previously senior vice president and general manager of Intel’s Non-Volatile Memory Solutions Group. Solidigm will have its headquarters in San Jose, California.
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