South Korean company SK Hynix said it has completed the first phase of acquiring Intel’s NAND flash memory chip business after receiving regulatory approvals from eight countries, including China.
In return, SK Hynix is paying $ 7 billion (approximately 52,213.07 billion rupees) of the total price of 9 billion US dollars (approximately 67,131.09 billion rupees) of the deal, the second largest memory chip maker said in a statement Thursday.
The agreement, signed in 2020, allows Intel to focus on its smaller but more lucrative Optane memory business. For SK Hynix, this is the largest acquisition of all time as the company looks to increase its capacity to build NAND chips, which are used to store data in smartphones and data center servers.
“This acquisition will represent a paradigm shift for SK Hynix’s NAND flash business to rise to the top tier global level,” said Park Jung-ho, SK Hynix vice chairman and co-CEO.
A subsidiary of SK Hynix called Solidigm, headquartered in San Jose, California, USA, will manage the newly acquired NAND solid state drive (SSD) business.
Lee Seok-hee, co-CEO of SK Hynix, will be named Executive Chairman of Solidigm, while Rob Crooke, former senior vice president of Intel, will be named CEO of Solidigm, SK Hynix said in the statement.
The second phase of the transaction is expected to close in or after March 2025 along with payment of the remaining $ 2 billion (approximately Rs 14,917.5 billion) and includes SK’s acquisition of Intel’s remaining assets in the NAND business Hynix, including intellectual property and labor, added the statement.
© Thomson Reuters 2021