Intel has agreed to sell its NAND storage division to South Korean semiconductor supplier SK Hynix in a deal valued at around €9 billion. The acquisition will be phased in by 2025 and will include Intel's SSD business and a production facility in the Chinese city of Dalian, in addition to the NAND and wafer divisions. The deal will strengthen Hynix's position in the world of chip manufacturing, pushing the South Korean company into second place in the global NAND memory market, behind only Samsung. Meanwhile, the Intel divestment will allow the tech giant to focus on its core offerings. However, it should be noted that Hynix shares actually lost value following the announcement of the purchase - the largest ever for the company - with analysts concerned about the price paid.
Good time to sell?
It is also possible that Intel's decision to sell was influenced by other factors. Although the company's NAND division posted profits during the first half of this year, it had previously posted consistent annual losses. Ongoing US-China tensions may also have prompted Intel's decision to sell its Dalian plant. "I am proud of the NAND memory business we have built and believe this combination with SK Hynix will grow the memory ecosystem to the benefit of customers, partners and employees," Intel CEO Bob Swan said in a press release. "For Intel, this transaction will allow us to further prioritize our investments in differentiated technology, where we can play a greater role in the success of our customers and deliver attractive returns to our shareholders." NAND flash memory is a type of storage technology that does not require power to maintain data. It's incredibly common, used on smartphones, USB drives, and SD cards. With the Intel purchase, SK Hynix now has a 23,2% share of the NAND flash market. Via Bloomberg