Intel announced that it has completed the first phase of the transaction with SK Hynix and has received 7 billion US dollars from SK Hynix. After the completion of this transaction, all of Intel’s SSD and NAND businesses will be owned by SK Hynix.
SK Hynix also announced the establishment of a new wholly-owned subsidiary “Solidigm” in the United States to manage and operate the SSD business. The CEO of this subsidiary will be served by SVP and GM, Rod Crooke of Intel’s non-volatile storage solutions department. “Solidigm is poised to be the world’s next big semiconductor company, which presents an unprecedented opportunity to reinvent the data memory and storage industry,” said Crooke. “We are steadfast in our commitment to lead the data industry in a way that can truly fuel human advancement.”
The content of this transaction includes Intel’s SSD business, NAND IP and corresponding wafer manufacturing plants, with a total value of approximately US$9 billion. The transaction is divided into two steps. The first step completed today includes the transfer of Intel’s factory in Dalian, China, some employees and some patents to SK Hynix.
The two parties expect that this transaction will be completed as soon as March 2025, while Intel’s Dalian plant will continue to produce NAND wafers and retain some design and production patents. When the transaction is finally completed, Intel will transfer all remaining employees, related R&D departments and remaining patents to Hynix.
Intel hopes to focus on the processor by selling its storage business. However, Intel’s 3D XPoint technology will not be sold, but the prospect of this technology is also overshadowed by Intel’s partner Micron’s suspension of production of this product.