SK hynix can pay US $9 billion for the Intel NAND Memory Wave and storage enterprise, which includes the NAND SSD enterprise, the NAND component and wafer enterprise, and the Dalian NAND memory manufacturing facility in China. SK hynix aims to reinforce the competitiveness of its NAND flash options as one of many leading world semiconductor firms and grow the memory ecosystem to the benefit of consumers, partners, employees and shareholders. Intel will retain its Intel® Optane™ enterprise and intends to speculate transaction proceeds in long-time period development priorities. SK hynix pays US $9 billion for the Intel NAND memory and storage enterprise, which incorporates the NAND SSD business, the NAND part and wafer enterprise, and the Dalian NAND memory manufacturing facility in China. SK hynix aims to enhance the competitiveness of its NAND flash options as one of the main global semiconductor firms and develop the memory ecosystem to the profit of customers, companions, workers and shareholders. Intel will retain its Intel® Optane™ business and intends to speculate transaction proceeds in lengthy-term growth priorities.

SK hynix and Intel at the moment introduced that they have signed an settlement on Oct. 20, KST, beneath which SK hynix would purchase Intel’s NAND memory and storage enterprise for US $9 billion. The transaction contains the NAND SSD enterprise, the NAND part and wafer enterprise, and the Dalian NAND memory improvement solution manufacturing facility in China. Intel will retain its distinct Intel® OptaneTM business. SK hynix and Intel will endeavor to acquire required governmental approvals anticipated in late 2021. Following receipt of those approvals, SK hynix will purchase from Intel the NAND SSD enterprise (together with NAND SSD-related IP and staff), as properly as the Dalian facility, with the first fee of US $7 billion. SK hynix will purchase from Intel the remaining property, together with IP associated to the manufacture and design of NAND flash wafers, R&D employees, and the Dalian fab workforce, upon a last closing, anticipated to occur in March 2025 with the remaining cost of US $2 billion. Per the agreement, Intel will continue to manufacture NAND wafers on the Dalian Memory Manufacturing Facility and retain all IP associated to the manufacture and design of NAND flash wafers till the final closing.

With this acquisition, SK hynix goals to boost the competitiveness of its storage solutions, together with enterprise SSDs, in the quickly growing NAND flash area, and further aims to leap forward as one of many main international semiconductor firms within the industry. SK hynix expects that the transaction would allow SK hynix to grow the memory ecosystem to the benefit of shoppers, partners, staff and shareholders. As the worldwide leader in the semiconductor industry, Intel possesses business-leading NAND SSD technology and quadruple degree cell (QLC) NAND flash merchandise. For the primary six months ended June 27, 2020, the NAND businesses represented roughly US $2.8 billion of the income for Intels Non-risky Memory Options Group (NSG) and contributed roughly US $600 million to NSG operating earnings. SK hynix developed the world’s first Cost Lure Flash (CTF)-primarily based, 96-layer 4D NAND flash in 2018 and 128-layer 4D NAND flash in 2019. SK hynix will combine Intels options technology and manufacturing capability so as to determine a higher value-added 3D NAND solutions portfolio together with enterprise SSDs.

Intel intends to invest transaction proceeds to ship management merchandise and advance its lengthy-term growth priorities, including synthetic intelligence, 5G networking and the intelligent, autonomous edge. Intel and SK hynix will work together to make sure a seamless transition for purchasers, suppliers and employees. The 2 firms will work collaboratively as they did not too long ago with DDR5, to higher serve the growing demand from the memory-primarily based semiconductor ecosystem. "I am happy to see SK hynix and Intel`s NAND division, which have led the NAND flash expertise innovation, work to construct the new future collectively," stated Seok-hee Lee, Chief Govt Officer (CEO) of SK hynix. Bob Swan, Intel CEO mentioned, "I am proud of the NAND memory business we have now constructed and believe this combination with SK hynix will grow the Memory Wave ecosystem for the profit of customers, partners and staff. Citi served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Ok&C and Fangda Partners served as authorized counsel to SK hynix.