SK hynix Completes Acquisition of Intel’s NAND Business
Deal News | Mar 29, 2025 | EIN
SK hynix has finalized its acquisition of Intel’s NAND memory operations, a significant move in its enterprise solid-state drive (SSD) market expansion. This acquisition, concluded with the final payment and transfer of operations, marks the end of a deal that began in October 2020 and totals $8.84 billion, the largest M&A in South Korean history. The transaction was executed in two financial tranches, with an initial $6.61 billion payment made in 2021 and a final $2.24 billion paid recently. With this purchase, SK hynix now owns Intel's NAND intellectual property, R&D capabilities, and staff. SK hynix rebranded Intel's SSD business under its U.S.-based subsidiary, Solidigm. CEO Kwak Noh-jung stated the strategic significance of the Dalian facility acquired through this deal, noting compliance with U.S. regulations and customer needs as priorities. The company aims to capitalize on the AI-driven rise in storage demand and anticipates a 3.5-fold growth in the enterprise SSD sector by 2025.
Sectors
- Semiconductors
- Technology
- Mergers & Acquisitions
Geography
- South Korea – SK hynix is based in South Korea and the acquisition is the largest in Korean history, impacting regional business dynamics.
- United States – Intel's business was partially based in the U.S., and the newly formed Solidigm, a subsidiary of SK hynix, is based in the U.S.
- China – The deal includes Intel's Dalian fabrication plant in China, which is significant for its production capabilities.
Industry
- Semiconductors – This industry involves the design and manufacture of semiconductor devices, which are crucial for memory components integral to SK hynix and Intel's NAND business.
- Technology – The acquisition pertains to technology advancements, particularly around SSDs and AI-driven data applications, affecting SK hynix's strategic capabilities.
- Mergers & Acquisitions – A significant aspect of the article is the completion of a major acquisition deal in the M&A space, involving SK hynix and Intel.
Financials
- $8.84 billion – Total deal price for the acquisition of Intel's NAND memory business by SK hynix.
- $6.61 billion – Initial payment made by SK hynix at the end of 2021 for the first stage of the acquisition.
- $2.24 billion – Final payment made by SK hynix to complete the acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| SK hynix | Acquirer | Company | South Korean semiconductor manufacturer acquiring Intel’s NAND memory business. |
| Intel Corporation | Target | Company | The American multinational corporation that sold its NAND memory business to SK hynix. |
| Solidigm | Acquired Subsidiary | Company | A U.S.-based subsidiary of SK hynix, formed from rebranding Intel's SSD business post-acquisition. |
| Kwak Noh-jung | CEO | People | The CEO of SK hynix, who commented on the acquisition's strategic importance. |
| Financial Supervisory Service | Regulatory Body | Government | The South Korean regulatory body where the acquisition completion was filed. |