SK Hynix finalizes the acquisition of Intel's NAND business, taking full control of Solidigm

SK hynix completes its acquisition of Intel's NAND business for $8.85 billion.

: SK hynix has finalized its acquisition of Intel's NAND flash memory business, paying a total of $8.85 billion. This acquisition unfolded in two phases, with the final $1.9 billion installment securing critical assets like intellectual property and R&D resources. Intel's strategic exit from the NAND market allows it to focus on AI and semiconductor manufacturing. SK hynix's acquisition strengthens its position against industry giants like Samsung, with a combined market share of over 20%.

The multi-year acquisition process that began in 2020 concluded with SK hynix's final payment of $1.9 billion, bringing the total acquisition value to $8.85 billion and transferring Intel's NAND memory business to SK hynix. With this final installment, SK hynix secured critical assets, including proprietary NAND IP, research and development infrastructure, and a skilled technical workforce, which are expected to drive innovation and the integration of Solidigm, a subsidiary of Intel's SSD operations. The transaction was finalized on March 27, 2025, as per a regulatory filing.

Intel had initially sold its SSD business and a manufacturing facility in Dalian, China, to SK hynix for $6.61 billion in December 2021, forming the first phase of the acquisition. This included the rebranding of Intel's enterprise SSD business into Solidigm, which continued as a standalone entity under SK hynix's ownership. However, key components like NAND-related intellectual property and R&D resources remained with Intel until this recent closure, hindering complete collaboration between Solidigm and SK hynix.

Intel's decision to exit the NAND market is strategic, allowing it to pivot towards sectors with higher growth potential. Over time, the NAND market has faced commoditization with declining prices that impacted profitability, influencing Intel to focus on areas such as artificial intelligence chips and advanced semiconductor manufacturing. This move aligns with Intel's broader vision to realign its business priorities towards technology segments that promise more lucrative returns.

For SK hynix, acquiring the NAND business enhances its competitive edge globally, especially against market leaders like Samsung Electronics, holding over 30% of the NAND market. This expansion positions SK hynix as a formidable player with an estimated combined market share exceeding 20%. SK hynix gains access to advanced floating gate NAND flash technology, a hallmark of Intel's operations, and an established footing in the enterprise SSD market.

The integration presents certain challenges, particularly technological differences between SK hynix's operations and those inherited from Intel. SK hynix traditionally utilized charge trap flash (CTF) technology, whereas Intel's Solidigm maintained production of high-endurance SSDs based on floating gate NAND technology. Initially, SK hynix might need to maintain separate production lines but may eventually unify around a cohesive process to streamline operations. Intel's separation ends their prior agreement of jointly running operations at the Dalian facility, allowing both companies to pursue distinct strategic objectives without existing contractual ties.

Sources: TechSpot, Industry Reports, Intel Official Report, SK hynix Press Release, Analyst Commentary

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