Intel Corporation to Sell NAND Memory and Storage Business to SK Hynix
Posted on 10/20/2020
Intel Corporation signed a deal to sell its NAND memory and storage business, including a China production factory, to South Korea’s SK Hynix for US$ 9 billion in cash. This deal would make SK Hynix the world’s second-largest NAND chipmaker, behind only Samsung. This transaction provides Intel with an exit from the memory chip market.
The transaction includes the NAND SSD business, the NAND component and wafer business, and the Dalian NAND memory manufacturing facility in China. Intel will retain its distinct Intel Optane business. SK hynix and Intel will endeavor to obtain required governmental approvals, expected in late 2021.
According to the press release, “Following receipt of these approvals, SK hynix will acquire from Intel the NAND SSD business (including NAND SSD-associated IP and employees), as well as the Dalian facility, with the first payment of US $7 billion. SK hynix will acquire from Intel the remaining assets, including IP related to the manufacture and design of NAND flash wafers, R&D employees and the Dalian fab workforce, upon a final closing expected to occur in March 2025 with the remaining payment of US $2 billion. Per the agreement, Intel will continue to manufacture NAND wafers at the Dalian Memory Manufacturing Facility and retain all IP related to the manufacture and design of NAND flash wafers until the final closing.”
Advisors
Citi served as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP, K&C and Fangda Partners served as legal counsel to SK hynix. BofA Securities served as financial advisor and Munger, Tolles & Olson LLP, Wilmer Cutler Pickering Hale and Dorr LLP, Linklaters LLP and Bae, Kim & Lee LLC served as legal counsel to Intel.
