SK Hynix company made a deal with Intel to buy NAND
SK Hynix has announced the acquisition of one of the divisions of Intel Corporation. It is about NAND direction, which is engaged in chip production. For some time now this business has been operating at a loss, so Intel decided to get rid of it before the subdivision has aggravated the state of affairs in the corporation. The deal totaled $9 billion.
While the parties are waiting for regulatory approval of the purchase and the end of the acquisition process is promised at the end of this year. The transaction itself is planned to close by 2025. According to paragraphs of the contract, SK Hynix payment will be made in two stages. The first one will be held in 2021, under which the Korean company will pay $7 billion for the opportunity to use NAND patents and continue production of chips at the factory in China. The second transaction, worth $2 billion, will be carried out in 2025 at the closing of the deal. At that time, SK Hynix will take over the development department as well as production process rights.
Intel Corporation wants to direct the money from the sale of the division to the development of artificial intelligence technology, expansion of development in the field of peripherals and 5G modems. It should be noted that the deal with a U.S. company will be the largest for SK Hynix since its inception.
Korean semiconductor manufacturer SK Hynix was founded in 1983. The company is the third largest chip manufacturer in the world and the fifth largest manufacturer of RAM. Originally, the corporation was called Hyundai Electronic. In 1999, the company merged with LG Semicon, and the management rebranded the company to Hynix Semiconductor. In 2001, the division became independent and left the Hyundai Group, and a year later merged with SK Group, which led to the name change to SK Hynix.
Due to active investment in new areas, the company is actively developing. SK Hynix has production facilities in the USA, Korea, Taiwan and China, and its products are sold worldwide. The number of employees in all divisions is 21 thousand people.
The production is divided into several directions. The main one is the production of semiconductor memory DRAM. The devices have low power consumption and are used in notebooks. DRAM allows you to increase the battery life of the equipment.
The second direction is the production of memory for data centers. The corporation offers various modules from 1 to 4 GB. SK Hynix also produces memory modules designed for graphic adapters, memory for mobile devices, flash memory for various equipment and much more.