SK Hynix to get Intel's NAND Memory Chip Business
21 October, 2020
SK Hynix said Tuesday that it will buy Intel's NAND flash memory business for US$9 billion, the biggest-ever acquisition by a Korean company.
The offer changes the map of the global NAND market by catapulting SK Hynix from fifth to second behind market leader Samsung.
SK Hynix will acquire Intel's NAND flash memory production business and high-capacity SSD business and related patents. The offer also contains Intel's NAND plant in Dalian, China, that your world's top chipmaker spent $8 billion on during the last decade.
"Intel's NAND business achieved $2.8 billion in sales in the first half of the year and an operating profit of $600 million," an SK spokesman said. "We made the bold decision to accomplish a solid leap forward."
Intel, which can be the world's biggest non-memory chipmaker, has paid its entire memory business to SK Hynix. The global market is scaled at $428.3 billion, with non-memory chips accounting for 75 percent and memory chips for the rest.
SK Hynix already ranks second in the global DRAM market but between fourth and fifth in the NAND market, which is led by Samsung with a 33.8 percent market share, followed by Japan's Kioxia (17.3 percent).
But if SK Hynix combines its 11.4 percent market tell Intel's 11.5 percent, it'll rise to No. 2 with 22.9 percent.
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