Intel Will Sell its NAND Memory Business to SK Hynix

Intel has agreed to sell its NAND memory chip business to SK Hynix, the South Korean chipmaker. Earlier Sources are suggested that the sale will go for roughly $10 billion; however, the deal was closed for $9 billion in an all-cash transaction that would see Intel’s SSD business in the United States go to SK Hynix. The first payment is set for $7 billion USD and SK hynix will acquire all IP related to the manufacture and design of NAND flash wafers after the final closing. Also included are all R&D employees and the Dalian fab workforce (its 3D NAND factory in China). The final closing is expected to happen in March 2025, at which remaining payment of $2 billion USD will occur. The agreement indicates that Intel will continue to manufacture NAND wafers at the Dalian facility (as well as retain all IP related to the manufacture and design of NAND flash wafers) until this date.

Intel has agreed to sell its NAND memory chip business to SK Hynix, the South Korean chipmaker. Earlier Sources are suggested that the sale will go for roughly $10 billion; however, the deal was closed for $9 billion in an all-cash transaction that would see Intel’s SSD business in the United States go to SK Hynix. The first payment is set for $7 billion USD and SK hynix will acquire all IP related to the manufacture and design of NAND flash wafers after the final closing. Also included are all R&D employees and the Dalian fab workforce (its 3D NAND factory in China). The final closing is expected to happen in March 2025, at which the remaining payment of $2 billion USD will occur. The agreement indicates that Intel will continue to manufacture NAND wafers at the Dalian facility (as well as retain all IP related to the manufacture and design of NAND flash wafers) until this date.

Originally founded in 1983 as Hyundai Electronics Industries, SK hynix eventually jumped into the DRAM and NAND market as a manufacturer. The company’s flash drives are used in both premium consumer PCs and by the largest enterprise infrastructure manufacturers, while its first consumer-grade SSD released in the United States (SK Hynix Gold P31) was launched back in August of this year. It will be interesting to see if they will be releasing more end-user drives going forward. Nonetheless, this new acquisition by the company will significantly increase its capabilities to build NAND chips, making a huge statement to its competition.

This news really comes at no surprise, as Intel has made it clear in the past that it is open to partnerships or completely selling off their NAND business. This is mainly due to the fierce, low-profit nature of the flash storage industry (both companies have posted mostly losses with their NAND businesses in recent years).  It’s also not certain whether Intel will stop producing SSDs altogether once the deal has been closed.

Intel and SK hynix has stressed that they will work together to help ensure a smooth transition for their customers, suppliers, and employees.

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