SK hynix acquires Intel’s NAND memory and storage business for $9 billion

SK hynix, one of the world’s biggest manufacturer and supplier of NAND flash storage, is further expanding their business with the acquisition of Intel’s NAND memory and storage business. The agreement will cost SK hynix a total of $9 billion and is expected to close by March 2025.

The acquisition will help SK hynix enhance their portfolio in the storage solutions market, which include enterprise SSDs. SK hynix will first gain control over Intel’s NAND SSD business (including NAND SSD-associated IP and employees), as well as the Dalian facility in China.

Later, SK hynix will gain the remaining assets which include IP related to the manufacture and design of NAND flash wafers, R&D employees, and the Dalian fab workforce. What is not included in this agreement is the Intel Optane business, which will remain with Intel.

Commenting on the acquisition, Seok-Hee Lee, Chief Executive Officer (CEO) of SK hynix said:

I am pleased to see SK hynix and Intel`s NAND division, which have led the NAND flash technology innovation, work to build the new future together. By taking each other`s strengths and technologies, SK hynix will proactively respond to various needs from customers and optimize our business structure, expanding our innovative portfolio in the NAND flash market segment, which will be comparable with what we achieved in DRAM.

Bob Swan, Intel’s CEO said:

I am proud of the NAND memory business we have built and believe this combination with SK hynix will grow the memory ecosystem for the benefit of customers, partners and employees. For Intel, this transaction will allow us to further prioritize our investments in differentiated technology where we can play a bigger role in the success of our customers and deliver attractive returns to our stockholders.