According to South Korean media reports, SK Hynix will complete the acquisition of Intel’s NAND business next month.
This strategic acquisition, valued at $8.844 billion, is the largest merger and acquisition deal ever undertaken by the South Korean company, demonstrating SK Hynix’s ambition to expand its business beyond traditional DRAM into other areas.
The origin of this acquisition dates back to October 2020, when SK Hynix announced its intention to acquire Intel’s NAND business.
The decision was aimed at enhancing its market share and capabilities in NAND, which is a crucial component of the storage solutions market.
By the end of 2021, SK Hynix had completed the first phase of the acquisition, paying $6.609 billion and taking over Intel’s SSD business division.
This phase laid the foundation for SK Hynix to integrate Intel’s NAND design assets, R&D, and production facility personnel.
The acquisition also includes Intel’s factories in China, which are crucial for SK Hynix’s accelerated entry into the global NAND market.
The acquisition comes at a time when the semiconductor industry is experiencing rapid technological advancements and fierce competition.
Intel was the world’s second-largest NAND operator after Samsung and an important player in the NAND market.
By acquiring Intel’s NAND business, SK Hynix hopes to strengthen its competitiveness in the face of industry giants like Samsung and Micron, particularly in the NAND and SSD markets.
Last year, SK Hynix’s NAND division achieved record-high revenue of 19.106 trillion won, a significant increase from 5 trillion won in 2019.
In just five years, revenue grew fourfold, highlighting SK Hynix’s successful expansion in the NAND sector.
This acquisition is expected to further solidify SK Hynix’s position in the rapidly growing NAND market, capitalizing on the increased demand for data storage driven by the expansion of data centers and the rise of artificial intelligence technologies.
With tech giants like Google and Meta investing heavily in data centers, the demand for enterprise SSD products continues to grow.
SK Hynix plans to drive innovation and growth by strengthening its market position and leveraging AI technology to seize this trend.
Acquiring Intel’s NAND business, including its valuable intellectual property and R&D resources, is critical for SK Hynix to maintain its competitive edge in the ever-changing semiconductor market.
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