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takyon writes:

It's Official, Intel Sells NAND Fab, SSD Business to SK hynix for $9 Billion

Today, SK hynix issued a press release stating that it has signed an agreement to buy Intel's NAND memory and storage business. The sale includes Intel's SSD business, NAND IP, and wafer production, all for a tidy sum of USD 9 billion - but it comes in the form of two payments. The sale includes Intel's Dalin fab in China, but the deal's final step won't complete until March 2025. In the meantime, Intel will still manufacture NAND wafers at the Dalian facility.

Intel has yet to comment on the matter, but it appears that it will soon exit the NAND flash SSD business entirely. Intel will retain its Optane memory business and IP, which isn't surprising given that the exotic underlying 3D XPoint technology is jointly-designed by Intel and Micron and not available to other memory producers. Intel currently doesn't manufacture Optane memory in high volumes – it simply purchases the memory from Micron.

SK hynix and Intel will seek governmental approvals and hope to gain permission for the sale in late 2021. At that time, SK hynix will issue an initial $7 billion payment and gain Intel's NAND SSD-associated IP, SSD business, employees, and Dalian facility.

The second payment of $2 billion in March 2025 will grant SK hynix the remaining assets, including NAND manufacturing IP, R&D employees, and the remainder of the Dalian workforce. At that point, Intel will stop manufacturing wafers at the Dalian plant.

Also at AnandTech, CNN, and Wccftech.

Original Submission