SK hynix Closes Intel NAND and SSD Business Acquisition
January 4, 2022
hynix has completed the first phase of the transaction to acquire Intel's NAND
and solid-state drive (SSD) business. Following the recent merger clearance from
China's State Administration for Market Regulation on Dec. 22, SK hynix closed
the first phase of the transaction by acquiring Intel's SSD business and the
Dalian NAND flash manufacturing facility in China. In exchange, SK hynix will
pay US $7 billion in consideration.
In the second phase of the transaction, SK hynix will acquire from Intel the
remaining assets in relation to its NAND business, including IP related to the
manufacture and design of NAND flash wafers, R&D employees for NAND flash
wafers, the Dalian facility workforce, and the other associated tangible /
intangible assets. Closing of the second phase is expected to occur in or after
March 2025 with the remaining payment of US $2 billion, which will complete the
The newly established U.S subsidiary, which will manage the newly acquired SSD
business, will be known as "Solidigm". This name reflects Solidigm's commitment
to creating a new solid-state paradigm that provides unmatched customer service
and revolutionizes the memory storage industry.
Solidigm will be headquartered in San Jose, California, and manage product
development, manufacturing, and sales of the newly acquired SSD business, which
was formerly operated by Intel. Lee Seok-hee, president and co-CEO of SK hynix
will be appointed executive chairman of Solidigm, who will lead the post-merger
integration processes after the 1st closing. Rob Crooke, former senior vice
president of Intel will be appointed CEO of Solidigm.
SK hynix, Solidigm, and Intel will cooperate with each other for a successful
final close of the deal.
hynix sees the opportunity to greatly enhance its NAND Flash business
competitiveness to the level of its world-leading DRAM business, as SK hynix
excels in mobile NAND flash while Solidigm shows industry-leading strengths in
enterprise SSDs (eSSDs). SK hynix will be able to take advantage of the synergy
of the combined business portfolio.
Park Jung-ho, vice chairman and co-CEO of SK hynix said, "My heartfelt welcome
to the Solidigm team members who are joining our family. This acquisition will
present a paradigm shifting moment for SK hynix's NAND flash business to enter
the global top tier level. With this acquisition, SK hynix will be one step
further in its path towards global 1st tier technology company."
"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."