After some rumors about it, SK Hynix officially announced that it would acquire Intel’s memory chip business, which will require the company to invest 10.3 trillion won, or around 7.7 billion euros.
The main objective of this acquisition is to strengthen the SK Hynix brand, which wishes to improve its position against its biggest competitor, Samsung. The now-revealed announcement says the company will acquire “all of Intel’s” NAND business division “excluding the Optane division,” and that includes the Intel plant in Dalian, China.
SK Hynix will pay Intel 8 trillion won ($ 5.97 billion) by 2021 to get its first factory in China and SSD for the first time. He will settle the remainder, around 2.3 trillion won (€ 1.72 billion), by March 2025 to complete the contract. The contract will make SK Hynix the second largest memory chip maker in the world, behind Samsung.
Intel sells its memory division to SK Hynix
SK boss Hynix Seok-Hee Lee believes the acquisition will allow his business to proactively meet the diverse needs of its customers and optimize its structure. This purchase will also make SK Hynix’s position in the memory chip market “comparable to what we have achieved in the DRAM industry”.
Intel CEO Bob Swan says the deal allows Intel to focus “on a different technology where we can play a bigger role.”
This purchase will be funded in cash from existing reserves and a loan, SK Hynix said in its statement which can be read here.
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