Intel Corp. has got into an agreement to sell its Nand memory unit to South Korean SK Hynix Inc. at a value of $9 Billion, with efforts to shift its primary business away from market slumps.
According to the companies, the deal will have SK Hynix buy most of Intel’s memory business and memory manufacturing operations. The acquisition of operations also generated around $2.8 billion in sales for SK Hynix in the first half of the year.
The U.S. chip maker unit makes NAND flash memory products that are utilized in devices such as cameras and hard drives. The new deal would make SK Hynix one of the largest NAND memory makers globally, alongside shoring up its business in the Covid-19 pandemic with the rise of demand for chips.
The combined market share for both the companies was over 20% in the second quarter this year, according to sources. Notably, the deal will be taking place in several stages through 2025 which would also comprise Intel Corp’s solid-state drive (SSD) NAND flash and a production facility located in Chinese city Dalian. Meanwhile, Intel will continue manufacturing NAND wafers at the Dalian foundry