Components peripherals News
Intel’s $9B NAND SSD, Memory Sale To SK Hynix: 6 Big Things To Know
CRN dives deep into the details of Intel’s NAND SSD divestiture, how it will help SK Hynix, which Intel products it will impact and what it means for Intel’s Optane business.
What Intel, SK Hynix Hope To Get Out Of The Deal
SK Hynix said the acquisition of Intel’s NAND business will make it more competitive in the storage market, particularly in the realm of enterprise SSDs.
The company highlighted Intel’s “industry-leading” NAND SSD technology and quadruple level cell NAND flash products and how Intel’s NAND businesses generated $2.8 billion in revenue and contributed roughly $600 million in operating income for the first six months of 2020.
“I am pleased to see SK Hynix and Intel’s NAND division, which have led the NAND flash technology innovation, work to build the new future together,” said Seok-Hee Lee, CEO of SK Hynix, in a statement. “By taking each other’s strengths and technologies, SK Hynix will proactively respond to various needs from customers and optimize our business structure, expanding our innovative portfolio in the NAND flash market segment, which will be comparable with what we achieved in DRAM.”
Intel plans to use the proceeds to the $9 billion NAND deal to invest in products and long-term growth priorities, including AI, 5G networking and the “intelligent, autonomous edge,” according to the joint announcement from the two companies.
“I am proud of the NAND memory business we have built and believe this combination with SK Hynix will grow the memory ecosystem for the benefit of customers, partners and employees,” Intel CEO Bob Swan said in a statement. “For Intel, this transaction will allow us to further prioritize our investments in differentiated technology where we can play a bigger role in the success of our customers and deliver attractive returns to our stockholders.”