SK hynix moves ahead with Intel NAND, SSD acquisition

SK hynix' headquarters in Icheon, Gyeonggi [YONHAP]

SK hynix completed the first stage of its acquisition of Intel's NAND and solid-state drive (SSD) business, naming the acquired unit Solidgm.

The chipmaker said Thursday that a first payment of $7 billion includes the purchase of Intel’s NAND solid-state drive (SSD) business, NAND component and wafer business and a NAND flash manufacturing facility in Dalian, China.

The acquisition of the remaining assets worth $2 billion, including intellectual property on the design of NAND flash wafers and hiring of R&D researchers and the Chinese factory’s workforce, is expected in 2025.

The wrap-up of the first phase came after Chinese antitrust authorities granted the merger clearance last week.

Solidgm will be headquartered in San Jose, California with Lee Seok-hee, president and co-CEO of SK hynix, being appointed executive chairman of the U.S. subsidiary.

Rob Crooke, former senior vice president of Intel, will be CEO of Solidigm, according to a statement released by SK hynix.

The Korean chipmaker clinched the mega-acquisition with an aim of strengthening its position in the NAND flash segment.

SK hynix is the world’s second largest maker of DRAM memory after Samsung Electronics, but its foothold in NAND memory has been smaller. As of the third quarter of this year, SK hynix had a 13.5 percent market share in the global NAND memory market, the third largest after Samsung and Kioxia, according to research firm TrendForce.

“This acquisition will present a paradigm shifting moment for SK hynix’s NAND flash business to enter the global top tier level,” said Park Jung-ho, vice chairman and co-CEO of SK hynix in a statement.

Crooke, the CEO of the new unit, echoed that view.

“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,” he said.

“We are steadfast in our commitment to lead the data industry in a way that can truly fuel human advancement.”

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]