Intel and SK hynix this week completed a deal worth about $8.85 billion to sell the U.S. company’s NAND flash memory business to a South Korean company, completing a two-stage divestiture of Intel’s NAND business that began in 2020.
Image Source: SK Hynix
On Thursday, Intel received its final $1.9 billion payment from SK hynix. In turn, SK hynix officially took control of Intel’s NAND flash memory intellectual property and employees at Intel facilities working on the subject. This will allow Solidigm teams to collaborate more closely with SK hynix on future products, DigiTimes notes.
«“The transaction closed for the second time on March 27, 2025. The amount of the transfer received by Intel at the second closing was approximately $1.9 billion, net of certain adjustments,” Intel said in a filing with the U.S. Securities and Exchange Commission.
SK hynix’s acquisition of Intel’s NAND business occurred in two stages. In 2021, SK hynix acquired Intel’s SSD business and NAND fab in Dalian, China for $6.61 billion. SK hynix then renamed Intel’s enterprise SSD business to Solidigm and continued its operations under the new brand. However, only the physical assets and operations related to SSD were transferred at this stage, excluding Intel’s intellectual property, R&D infrastructure, and key personnel involved in NAND development and production.
Looking ahead, SK hynix may need to address the challenges associated with dual NAND technologies. Initially, the company may maintain separate product lines, offering specialized products that leverage the strengths of each technology. However, in the long term, the strategy may involve gradual consolidation around a single process technology to reduce complexity and manufacturing overhead.
Solidigm, Intel’s former enterprise SSD division, has significantly expanded SK hynix’s presence in the enterprise storage market. Despite technical differences in NAND production, SK hynix clearly intends to strategically use this acquisition to further strengthen its position in the enterprise SSD segment.
It is also reported that with the completion of the second phase of the deal, the agreement that allowed Intel to produce NAND wafers at SK hynix’s Dalian facility has been terminated.
«In connection with the second closing of the transaction, the NAND wafer manufacturing and sales agreement entered into in the first phase of the transaction between Intel, SK hynix and affiliates, under which Intel manufactured NAND wafers at SK hynix’s Dalian facility, has terminated,” the company said in a statement.