SK hynix has completed the first phase of its acquisition of Intel's NAND and SSD businesses.

SK hynix has completed the first phase of its acquisition of Intel’s NAND and SSD businesses.

  • SK hynix has acquired Intel’s SSD business and Dalian NAND Flash Manufacturing Facility assets in China
  • The new entity will be branded “Solidigm”
  • With the synergy of the combined business portfolio, SK hynix aims to become global 1st tier technology company.

SEOUL, South Korea, Dec. 29, 2021 – SK hynix Inc. (or “the Company,” www.skhynix.com) announced today that the first phase of its acquisition of Intel’s NAND and solid-state drive (SSD) business has been completed. On Dec. 22, SK hynix completed the first phase of the transaction by acquiring Intel’s SSD business and the Dalian NAND flash production plant in China, after merger approval from China’s State Administration for Market Regulation. SK hynix will give $7 billion in consideration in return.

The remaining assets in relation to Intel’s 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 other associated tangible/intangible assets, will be acquired by SK hynix in the second phase of the transaction. The second phase is projected to close in or around March 2025, with the final payment of US $2 billion to conclude the transaction.

The newly established U.S subsidiary, which will manage the newly acquired SSD business, will be known as “Solidigm” (www.solidigmtechnology.com). 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 based in San Jose, California, and will be responsible for product development, manufacture, and sales for the newly acquired SSD company, which was previously run by Intel. After the first close, Lee Seok-hee, president and co-CEO of SK hynix, will be named executive chairman of Solidigm, and will supervise the post-merger integration activities. Solidigm will be led by Rob Crooke, a former senior vice president of Intel.

SK Hynix, Solidigm, and Intel will work together to bring the agreement to a successful conclusion.

SK hynix sees an opportunity to raise its NAND Flash business to the same level of competitiveness as its world-leading DRAM business, since SK hynix shines in mobile NAND flash and Solidigm excels in enterprise SSDs (eSSDs). SK hynix will be able to benefit from the merged company portfolio’s synergy.

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.”

SK hynix Inc., headquartered in Korea, is the world’s top-tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), Flash memory chips (“NAND Flash”), and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.comnews.skhynix.com.

Solidigm is a leading global provider of innovative NAND flash memory solutions. Solidigm technology unlocks data’s unlimited potential for customers, enabling them to fuel human advancement. Born of the combination of Intel’s longstanding innovation in memory products and SK hynix’s international leadership and scale in the semiconductor industry, Solidigm became a standalone U.S. subsidiary under SK hynix in December 2021. Headquartered in San Jose, CA, Solidigm is powered by the inventiveness of close to 2,000 employees in 20 locations around the world. For more information about Solidigm, please visit www.solidigmtechnology.com.

SOURCE SK hynix Inc.

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