Intel Selling Its NAND Unit to SK Hynix for $9 billion

intel storage unit sk hynix

Intel has reportedly agreed to sell its NAND memory unit to SK Hynix for $9 billion in an all-cash deal.  Since the arrival of the new CEO Bob Swan, the company has looked towards selling its business units that are far from its core business.

The South Korean chipmaker in a statement said that it is paying 10.3 trillion won for Intel’s NAND business. This acquisition will include buying Intel’s NAND flash and wafer business. It also includes the purchase of Intel’s production facility located in the northeastern Chinese city of Dalian.

“This transaction will allow us to further prioritise our investments in differentiated technology,” said Intel CEO Bob Swan.

Intel has been looking to sell its flash group for months now. However, Hynix is not buying Intel’s Optane division. The Korean company will be paying a total of $7 billion to Intel for the acquisition of the NAND unit before the end of 2021 and the rest by the end of March 2025.

At the news of the deal, SK Hynix shares jumped and then fell nearly 2% as analysts expressed their concerns over expense on the deal. “Shareholders are negative about the deal because they believe the price is too expensive. It’s good news for other memory chipmakers, because the move would lead to industry consolidation,” said Lee Seung-woo, an analyst at Eugene Investment & Securities.