Intel Corporation has announced the sale of its NAND and SSD business to Seoul-based SK hynix for $9 billion.
The sale by Intel includes the transfer of certain NAND SSD-associated intellectual properties (IP) and employees, as well as the Dalian NAND memory manufacturing facility in China.
In exchange, SK hynix will pay Intel $7 billion in consideration.
Intel, with an intention to invest transaction proceeds for the delivery of leadership products and advancement of its long-term growth priorities, 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 $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.
While Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives, SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), Flash memory chips (“NAND Flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally.