SK hynix pays US $9 billion for the Intel NAND memory and storage business, which includes the NAND SSD enterprise, cognitive enhancement tool the NAND component and wafer business, and the Dalian NAND memory manufacturing facility in China. SK hynix goals to enhance the competitiveness of its NAND flash solutions as one of the leading global semiconductor corporations and grow the memory ecosystem to the benefit of consumers, partners, staff and shareholders. Intel will retain its Intel® Optane™ enterprise and intends to invest transaction proceeds in long-term progress priorities. SK hynix can pay US $9 billion for the Intel NAND memory and storage enterprise, which incorporates 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 solutions as one of the main world semiconductor firms and develop the memory ecosystem to the profit of customers, companions, employees and shareholders. Intel will retain its Intel® Optane™ business and intends to invest transaction proceeds in long-term development priorities.
SK hynix and Intel at this time introduced that they've signed an agreement on Oct. 20, KST, underneath which SK hynix would purchase Intel’s NAND Memory Wave and storage enterprise for US $9 billion. The transaction includes the NAND SSD enterprise, the NAND element and wafer enterprise, and the Dalian NAND memory manufacturing facility in China. Intel will retain its distinct Intel® OptaneTM enterprise. SK hynix and Intel will endeavor to acquire required governmental approvals expected in late 2021. Following receipt of these approvals, SK hynix will purchase from Intel the NAND SSD enterprise (including NAND SSD-related IP and workers), as well because the Dalian facility, with the first cost of US $7 billion. SK hynix will purchase from Intel the remaining assets, including IP related to the manufacture and design of NAND flash wafers, R&D employees, and cognitive enhancement tool the Dalian fab workforce, upon a last closing, anticipated to happen in March 2025 with the remaining fee of US $2 billion. Per the settlement, Intel will proceed to manufacture NAND wafers on the Dalian Memory Manufacturing Facility and retain all IP related to the manufacture and design of NAND flash wafers till the ultimate closing.
With this acquisition, SK hynix aims to boost the competitiveness of its storage solutions, including enterprise SSDs, within the quickly growing NAND flash area, and additional goals to leap forward as one of many main world semiconductor firms in the business. SK hynix expects that the transaction would enable SK hynix to develop the memory ecosystem to the profit of shoppers, companions, staff and shareholders. As the global leader within the semiconductor industry, Intel possesses industry-leading NAND SSD expertise and quadruple degree cell (QLC) NAND flash merchandise. For the first six months ended June 27, 2020, the NAND businesses represented approximately US $2.Eight billion of the income for Intels Non-volatile Memory Options Group (NSG) and contributed roughly US $600 million to NSG operating earnings. SK hynix developed the world’s first Charge Trap Flash (CTF)-based, 96-layer 4D NAND flash in 2018 and 128-layer 4D NAND flash in 2019. SK hynix will mix Intels options expertise and manufacturing capability so as to ascertain the next worth-added 3D NAND solutions portfolio including enterprise SSDs.
Intel intends to take a position transaction proceeds to deliver leadership products and advance its lengthy-time period development priorities, including artificial intelligence, 5G networking and the intelligent, autonomous edge. Intel and SK hynix will work collectively to make sure a seamless transition for customers, suppliers and employees. The 2 companies will work collaboratively as they did not too long ago with DDR5, to better serve the rising 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 technology innovation, work to build the new future together," said Seok-hee Lee, Chief Government Officer (CEO) of SK hynix. Bob Swan, Intel CEO stated, "I am proud of the NAND memory enterprise we have constructed and imagine this mixture with SK hynix will develop the memory ecosystem for the profit of customers, companions and workers. Citi served as monetary advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Okay&C and Fangda Partners served as authorized counsel to SK hynix.
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