In a statement South Korean chipmaker SK Hynix Inc said, it had completed the first phase of its acquisition of Intel Corp’s NAND flash memory chip business, having received regulatory nods from eight countries.
The acquisition, which was signed in 2020, will allow Intel to focus on its smaller but more lucrative Optane memory business.
The deal is SK Hynix’s biggest ever acquisition as it seeks to boost its capacity to build NAND chips, used to store data in smartphones and data center servers.
“This acquisition will present a paradigm shifting moment for SK Hynix’s NAND flash business to enter the global top tier level,” said Park Jung-ho, vice chairman and co-CEO of SK Hynix.
A SK Hynix subsidiary called Solidigm, headquartered in San Jose, California, United States, will manage the newly acquired NAND solid-state drive (SSD) business.
SK Hynix co-CEO Lee Seok-hee will be appointed executive chairman of Solidigm; Rob Crooke, former senior vice president at Intel, will be appointed CEO of Solidigm, said SK Hynix in a statement.
The second phase of the deal is expected to close either before or after March 2025 along with the payment of the remaining $2 billion, and will include SK Hynix’s acquisition of Intel’s remaining assets in the NAND business including intellectual property and workforce, said the company in a statement.