An Intel executive announced that SK Hynix will not only absorb Intel’s 3D NAND and SSD business after the acquisition $9 billion in all assets In the next few years, it will actually operate as an independent company headquartered in the United States. This move may help Intel’s storage business unit retain its existing US corporate and government customers after changing hands.
The newly established company will be renamed, headquartered in the United States, and led by Robert Crooke, the current general manager of Intel NAND products. LinkedIn (pass CRN). The business entity will initially be jointly owned by Intel and SK Hynix, and will become a wholly-owned subsidiary of the latter in 2025. Although it will become part of SK Hynix, it will maintain a certain degree of independence.
Intel’s 3D NAND and storage business has been mainly focused on servers and enterprise storage (this is also one of the reasons for the collapse of the Intel-Micron joint venture). In contrast, SK Hynix provides 3D NAND and storage solutions for almost all devices that require non-volatile storage. For this reason, the Korean giant will not integrate Intel’s divisions into SK Hynix and inevitably lose customers (especially customers from the government) and market share, but will retain Intel’s storage business as an independent entity.
Of course, it remains to be seen whether the newly established storage company will continue to develop its own 3D NAND memory, and whether it will use the SSD controller designed by SK Hynix. Nevertheless, at least it will officially become a department independent of the parent company.
In fact, the terms of the $9 billion deal between Intel and SK Hynix are quite complicated, so it may be too complicated to integrate Intel’s 3D NAND and storage assets into a Korean company. After these companies are approved by various regulatory agencies around the world, SK Hynix will pay Intel 7 billion U.S. dollars for the latter’s NAND and SSD business, including its fab, IP and employees in Dalian, China. However, until the transaction is finally completed in March 2025, Intel is still unable to obtain the remaining $2 billion. At this time, SK Hynix paid Intel 2 billion US dollars in remaining assets, including IP related to the manufacturing and design of NAND flash memory wafers, R&D employees, and the labor force of the Dalian fab. At the same time, Intel will continue to produce NAND flash memory in its wafer fabs until the contract finally ends after three years.