The latest information coming from Intel is that SK Hynix will soon be acquiring the company’s 3D NAND and SSD business for the total cost of all the assets being $9 billion. But the news doesn’t end there as SK Hynix will actually run its acquisition as a standalone company headquartered in the U.S. this move might just help Intel’s storage business unit keep its existing US-based corporate and government customers even after the change of hands and its helm.
After the acquisition, the newly established company will also receive a new name and will be headquartered in the U.S., and will also be headed by Robert Crooke, the current Intel’s General Manager of NAND Products.
Initially, after the successful acquisition, the new business entity will be owned by Intel and SK Hynix together. However, later on, it will become a wholly-owned subsidiary of SK Hynix in 2025. as we know that Intel’s 3D NAND and storage business has been focused primarily on server and enterprise storage.
Whereas, SK Hynix makes 3D NAND and storage solutions for all types of devices that require non-volatile storage. And if SK Hynix completely integrated Intel’s unit into itself, then it will potentially be losing clients (especially those from the government) as well as some of its market share. This is the reason why the South Korean giant will be keeping Intel’s storage business as a separate entity.
However, as of now, it’s not made public as to whether the new entity will use SSD controllers designed by SK Hynix or it will continue to develop its own 3D NAND memory. After getting the approval for its acquisition deal worldwide, SK Hynix will pay Intel $7 billion for its NAND and SSD businesses, which includes the fab in Dalian, China, IP, and employees. The remaining $2 billion will be paid to intel after the closure of the deal in March 2025.