Intel just finished selling its NAND flash memory business to SK Hynix for $8.85 billion. This deal started back in 2020 and happened in two parts. During the first part, SK Hynix paid $6.61 billion to buy Intel's SSD division plus a factory in Dalian, China. They renamed that factory Solidigm after taking it over. But this only included buildings and equipment – not the brainpower behind everything.
The second part wrapped up Tuesday when SK Hynix paid another $1.9 billion. This payment gave them full rights to all the special NAND technology Intel created, plus the research teams and technical experts who developed it. Between these two stages, Intel kept control of these important assets, which made it hard to combine the Solidigm operations with Intel's NAND teams fully. They set up this slow handoff to avoid any major problems during the switch.
For Intel, selling off this memory business helps it focus on growing areas like AI chips, making chips for other companies, and developing new manufacturing methods. The $1.9 billion comes at a perfect time for Intel since their Foundry business loses billions each year – this cash helps offset some losses. From SK Hynix's side, bringing together all pieces of Intel's NAND business makes them stronger against competitors worldwide.
This sale reflects a bigger trend of companies selling off basic memory products to concentrate on advanced semiconductor products like AI chips and other specialized processors. These advanced products earn higher profits and show better future potential. Both companies benefit from the transaction—Intel gets cash and focus, and SK Hynix gains technology and talent.
The second part wrapped up Tuesday when SK Hynix paid another $1.9 billion. This payment gave them full rights to all the special NAND technology Intel created, plus the research teams and technical experts who developed it. Between these two stages, Intel kept control of these important assets, which made it hard to combine the Solidigm operations with Intel's NAND teams fully. They set up this slow handoff to avoid any major problems during the switch.
For Intel, selling off this memory business helps it focus on growing areas like AI chips, making chips for other companies, and developing new manufacturing methods. The $1.9 billion comes at a perfect time for Intel since their Foundry business loses billions each year – this cash helps offset some losses. From SK Hynix's side, bringing together all pieces of Intel's NAND business makes them stronger against competitors worldwide.
This sale reflects a bigger trend of companies selling off basic memory products to concentrate on advanced semiconductor products like AI chips and other specialized processors. These advanced products earn higher profits and show better future potential. Both companies benefit from the transaction—Intel gets cash and focus, and SK Hynix gains technology and talent.
