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SK Hynix completes first phase of $9 billion Intel NAND business buy

SK Hynix completes first phase of $9 billion Intel NAND business buy
SK Hynix completes first phase of $9 billion Intel NAND business buy   -   Copyright  Thomson Reuters 2021   -  
By Reuters

<div> <p><span class="caps">SEOUL</span> -South Korea’s SK Hynix Inc said it had completed the first phase of its acquisition of Intel Corp’s <span class="caps">NAND</span> flash memory chip business, after it received regulatory nods from eight countries including China.</p> <p>In exchange, SK Hynix will pay $7 billion out of the deal’s total $9 billion price tag, the world’s second-largest memory chip maker said in a statement on Thursday. </p> <p>The deal, signed in 2020, will allow Intel to focus on its smaller but more lucrative Optane memory business. For SK Hynix, it is the biggest acquisition ever as it seeks to boost its capacity to build <span class="caps">NAND</span> chips, used to store data in smartphones and data centre servers.</p> <p>“This acquisition will present a paradigm shifting moment for SK Hynix’s <span class="caps">NAND</span> flash business to enter the global top tier level,” said Park Jung-ho, vice chairman and co-<span class="caps">CEO</span> of SK Hynix. </p> <p>A SK Hynix subsidiary called Solidigm, headquartered in San Jose, California, United States, will manage the newly acquired <span class="caps">NAND</span> solid-state drive (<span class="caps">SSD</span>) business. </p> <p>SK Hynix co-<span class="caps">CEO</span> Lee Seok-hee will be appointed executive chairman of Solidigm, while Rob Crooke, former senior vice president of Intel, will be appointed <span class="caps">CEO</span> of Solidigm, SK Hynix said in the statement. </p> <p>The second phase of the deal is expected to close in or after March 2025 along with the payment of the remaining $2 billion, and will include SK Hynix’s acquisition of Intel’s remaining assets in the <span class="caps">NAND</span> business including intellectual property and workforce, the statement added. </p> </div>