"On December 30, 2021, SK Hynix announced today that it has successfully completed the first phase of the acquisition of Intel’s NAND flash memory and SSD business on December 30. Following the approval of the State Administration of Market Supervision and Administration of China on December 22, SK Hynix today completed the first phase of the follow-up process, including the takeover of the SSD business from Intel and the assets of its NAND flash memory manufacturing plant in Dalian, China. As a consideration, SK Hynix will pay Intel 7 billion U.S. dollars.
Afterwards, it is expected that at the second phase of delivery in March 2025 or later, SK Hynix will pay a balance of US$2 billion to acquire other related tangible/intangible assets from Intel, including intellectual property rights related to the production and design of NAND flash memory wafers , R&D personnel and employees of the Dalian factory. At that time, the acquisition transaction will be finalized.
The newly established US subsidiary will operate the acquired Intel SSD business. The name of the new company is set as ""Solidigm"". As a compound word of solid-state and paradigm, the name implies that Solidigm is committed to creating a new solid-state paradigm, providing unparalleled customer service and bringing innovation to the storage industry.
Solidigm will be headquartered in San Jose, California, and will be responsible for the product development, manufacturing and sales of the Intel SSD business acquired this time. SK hynix president and co-CEO Lee Seok-hee will also serve as the company's Executive Chairman, leading the integration process after the first phase of delivery. At the same time, Intel's former senior vice president Rob Crooke will be appointed as the company's CEO.
SK Hynix, Solidigm and Intel will work closely together until the transaction is finalized.
SK Hynix believes that through the synergies of the combined business portfolio, SK Hynix will have the opportunity to significantly increase the competitiveness of its NAND flash memory business to a global leading level comparable to that of the DRAM business. SK Hynix performed well in mobile terminal NAND flash memory, while Solidigm has more advantages in enterprise SSD (eSSD). SK Hynix will make full use of the synergies of the combined business portfolio.
SK hynix vice chairman and co-CEO Park Jung-ho said: ""I sincerely welcome the members of the Solidigm team to join our family. This acquisition will bring SK hynix’s NAND flash memory business to the global top tier. This is a breakthrough opportunity. At the same time, SK Hynix will also use this transaction to further its goal of becoming a world-class technology company.""
Crooke said: ""Solidigm will be a rising star in the global semiconductor industry, bringing unprecedented new opportunities to reshape the data storage and storage industry. We will unswervingly lead the data industry in a direction that is truly beneficial to human development. developing.