SK Hynix has taken a first step in acquiring Intel’s NAND flash memory portfolio. The South Korean chip manufacturer received approval from all global regulators.
According to Reuters, SK Hynix is permitted to follow up on its intent to acquire Intel’s NAND flash memory portfolio. Regulators in China and countries across the globe were able to object, but have all agreed to greenlight the acquisition.
According to SK Hynix, the first phase is the payment of a sum of 6.1 billion euros ($7 billion) as part of the total of nearly 8 billion euros ($9 billion), at which it acquires Intel’s NAND flash memory portfolio.
Expanding NAND production capacity
With the divestment of its NAND business, Intel plans to focus more on its Optane memory chips. With the purchase of Intel’s NAND business, SK Hynix sees an opportunity to further expand its NAND chip production capacity. These chips are mainly used for storing data in smartphones and data center servers.
SK Hynix will house the acquired portfolio under the banner of a different company: Solidigm.
The plans for the second phase of the acquisition are already known. The remaining 1.7 billion euros ($2 billion) will be paid. This phase includes the last Intel assets in the field of NAND technology, among which are employees and intellectual property. The second phase should be completed by March 2025.