In exchange, SK Hynix will pay $7 billion out of the deal's
total $9 billion price tag, the world's second-largest memory chip maker said
in a statement on Thursday.
The deal, signed in 2020, will allow Intel to focus on its
smaller but more lucrative Optane memory business. For SK Hynix, it is the biggest
acquisition ever as it seeks to boost its capacity to build NAND chips, used to
store data in smartphones and data centre servers.
"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.
A SK Hynix subsidiary called Solidigm, headquartered in San
Jose, California, United States, will manage the newly acquired NAND
solid-state drive (SSD) business.
SK Hynix co-CEO Lee Seok-hee will be appointed executive
chairman of Solidigm, while Rob Crooke, former senior vice president of Intel,
will be appointed CEO of Solidigm, SK Hynix said in the statement.
The second phase of the deal is expected to close in or
after March 2025 along with the payment of the remaining $2 billion, and will
include SK Hynix's acquisition of Intel's remaining assets in the NAND business
including intellectual property and workforce, the statement added. © Reuters
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