SK hynix acquires Intel's NAND business for $9 billion

SK hynix said that the US regulatory agency CFIUS has approved the company's $9 billion acquisition of Intel's NAND storage business, taking another step towards completing the transaction. SK hynix's stock price rose on the 12th, with the increase reaching 4% at one point...

SK hynix's official website reported on the 12th that its $9 billion acquisition of Intel's NAND storage business has been approved by the Committee on Foreign Investment in the United States (CFIUS). The transaction passed the antitrust review of the Federal Trade Commission (FTC) at the end of last year. 

The company said "CFIUS approval is an important milestone in taking over Intel's NAND business unit. The completion of the transaction will improve SK hynix's memory technology and expand its global power and influence."

The transaction has been approved by two necessary regulatory authorities in the United States, but it still needs to be approved by other regulatory authorities in China, the United Kingdom, etc. If the transaction is approved by the regulatory authorities, SK hynix can use Intel's non-volatile memory solution business to improve its competitiveness in the enterprise SSD market and strengthen its high value-added product portfolio.

It is reported that at the end of January this year, SK hynix signed a memorandum of understanding (MOU) with the Dalian Municipal Government to promote the acquisition of Intel's Dalian chip factory and subsequent new investment plans in Dalian.

The transaction is expected to be completed before the end of this year. If the transaction successfully passes the review of major countries including China, SK hynix will pay Intel US$7 billion for the first time and accept the transfer of intellectual property rights, human resources and other aspects related to NAND and SSD businesses.

SK hynix announced in October last year that it would acquire Intel's SSD, NAND flash, wafer business and production line in Dalian, China for $9 billion in cash. If the merger goes smoothly, SK hynix's market share will surpass that of Japanese company Kioxia and become the second largest memory company, second only to Samsung; Intel will be able to obtain funds to invest in its fast-growing logic chip business.

TrendForce data shows that as of the fourth quarter of last year, SK hynix had an 11.6% NAND market share, Intel had 8.6%, and Samsung ranked first with 32.9%.

Bloomberg analysis believes that Intel's withdrawal from the NAND Flash market may help maintain the supply and demand balance in the industry, and SK hynix is ​​expected to cut capital expenditures to support the acquisition.