Intel sold memory chips to SK Hynix for $ 9 billion, withdrew from the market

Tram Ho

Intel has agreed to sell its NAND memory chip business to South Korea’s SK Hynix for about $ 9 billion. The deal will allow Intel to focus more on its core chip manufacturing while also elevating the Asian company’s position in the booming memory chip market.

The Korean memory chip maker will pay Intel 10.3 trillion won to own a division that makes memory chips for computers and other devices. The merger will take place in phases from now until 2025, including the manufacturing division of solid-state drives, NAND flash memory and Intel’s wafer disk business. In addition, it includes Intel’s manufacturing plant in Dalian City, China.

Intel bán mảng chip nhớ cho SK Hynix với giá 9 tỷ USD, rút lui khỏi thị trường - Ảnh 1.

The Korean company said it will pay Intel $ 7 billion before the end of 2021, the rest will be paid in March 2025. SK Hynix’s consultant is Citigroup, and Intel advises Bank of America.

The deal will enhance SK Hynix’s position in the booming memory chip business after the Covid-19 pandemic dramatically increased demand for chips in virtually every technology device, from smartphones to smartphones. to the data centers. According to analyst Anthea Lai of Bloomberg Intelligence, the deal will help SK Hynix surpass Kioxia – a division of memory chips separated from Toshiba – in the NAND Flash memory market.

The deal will also make SK Hynix a great competitor, on par with other Korean companies dominating the memory chip industry, including Samsung Electronics and Micron Technology. However, this also caused many others to worry about the possibility of price manipulation in the NAND flash memory market.

Intel bán mảng chip nhớ cho SK Hynix với giá 9 tỷ USD, rút lui khỏi thị trường - Ảnh 2.

With the acquisition of Intel’s business, Hynix is ​​now entering the huge memory chip business. Although there are doubts about the price of the deal, I think it will. it is not a burden as it will help secure a solid cash flow over the long term . Said Greg Roh, analyst at HMC Securities. ” The consolidation in the market is good news for the Korean chipmakers, and will limit the problem of oversupply .”

Months ago, Intel said it was looking for different options for flash memory manufacturing. However, SK Hynix will not buy the Optane part, which develops chips that can store data forever and have read and write speeds faster than NAND – but not faster than traditional DRAM memory.

Opened for sale in 2018, the product is currently being successfully tested by several major cloud service providers, and Alibaba Group Holding is also using this technology to support a huge shopping spree during the single day. Their trunks.

Consult Bloomberg

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Source : Genk