Intel Non-Volatile Solutions Group

History

2020: SK Hynix purchased Intel Non-Volatile Solutions Group for $9 billion

On October 19, 2020 Intel announced sale of the business on release of memory of NAND flash of South Korean company SK Hynix for $9 billion. Under the terms of the agreement, the buyer until the end of the year will pay $7 billion, and will transfer the remained amount to the American technology giant by March, 2025.

The transaction was included the most part of division of Intel Non-Volatile Solutions Group, including business on release of solid state drives into perimeter and the Chinese production plant a flash memory. The company will reserve the assets connected with modules of memory Optane.

SK Hynix stated that both parties of the transaction intend to get approval of the governments at the end of 2021 and to close the transaction in March, 2025.

Intel sold business on release a flash memory for $9 billion, it was purchased by SK Hynix company

In March, 2020 the chief financial officer of Intel George Davis (George Davis) called memory of NAND of one of "big rates" of the company which will give it not simply "special technology", and "a product which will play more important role in success of our clients". However, according to the top manager though the division of NAND could return to profitability after difficult 2019, it did not reach desirable level.

For Intel this transaction will allow us to place even more priorities in our investments into the differentiated technologies where we will be able to provide attractive profit for our shareholders — the CEO of Intel Bob Svon said, commenting on sale of business on release a flash memory.

Thanks to the transaction with Intel the SK Hynix company will come to the second place in the world on the production volume of NAND flash chips. According to Trendforce which are given on October 20, 2020, Samsung is in the lead in this market from shares of 31.4%, it is followed by Kioxia (17.2%), SK Hynix (11.7%) and also Intel and Micron (on 11.5%). After completion of the transaction with Intel the share of SK Hynix will reach 23.2%.^[1]

Notes