Tech

Intel closes first phase of sale of SK Hynix SSD business

Why is it important: Intel has completed the first phase of its deal to sell its SK Hynix SSD business. The deal, if you remember, was announced in October 2020. At the time, Intel agreed to divest its $ 9 billion worth of NAND solid-state drives, NAND components and semiconductor wafers, and its Dalian-based NAND memory business in China.

This first phase SK Hynix will donate over $ 7 billion, with Intel retaining certain intellectual property rights related to the manufacturing and design of NAND flash plates. The chipmaker will be able to continue to use the Dalian plant for wafer production until the final closure, which is not expected to take place until March 2025 at the earliest.

Following the final closure, SK Hynix will receive the remaining SSDs from Intel, including R&D staff, for an additional $ 2 billion.

SK Hynix transforms the assets into a new subsidiary called Solidigm, a name that is said to reflect a new paradigm in solid state drives. The group will be chaired by Robert B. Crook, who previously served as senior vice president and general manager of Intel’s Non-Volatile Memory Solutions Group. The headquarters will be located in San Jose.

Intel said it will use the proceeds from the sale to “deliver leading edge products and advance its long-term growth priorities.”

After the sale, it would appear that Intel’s storage experiment is officially over. Earlier this year, Micron stopped production of 3D XPoint, a memory technology announced jointly by Micron and Intel in 2015. In the summer, Micron agreed to sell its 3D XPoint factory to Texas Instruments for $ 900 million.

Image Credit: PCPer


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