This is the first step in the divestiture of Intel’s SSD business for a process that is expected to continue until 2025.
Through a press release that was finally quite brief, Intel announced the end of the first step in the sale of its SSD activity to South Korean SK Hynix, with whom discussions have been underway for many months.
Chinese factory in Dalian changes hands
A little over a year ago, Intel and SK Hynix had already mentioned their intention to “do business”. The American then specified that he was going to withdraw from the SSD market by 2025 through a vast operation which, as a whole, was evaluated at 9 billion dollars.
Today’s announcement by Intel confirms this information, although, we said, it is still only the first step. Intel explains that it is selling its activities in the SSD including the transfer of several intellectual properties as well as the sale of its NAND memory production plant in Dalian, China.
In exchange for these changes of ownership, SK Hynix agrees to pay Intel the tidy sum of $ 7 billion.
An operation to be completed by 2025
If the first announcements go back more than a year, it is because the two partners had to wait for the agreement of the regulatory authorities, in particular with regard to the sale of the Chinese plant.
For a time, however, Intel will continue to produce NAND wafers at the factory now owned by SK Hynix and will retain certain intellectual property relating to the design and manufacture of the wafers until the complete completion of the process. transaction.
As we have said, it is only a first step for the time being. Intel’s SSD business is integrated into a new company, Solidigm, a subsidiary of SK Hynix. By 2025, the latter should take possession of the last elements still in Intel’s hands against a new payment of $ 2 billion.
Get Intel SSDs On Amazon