SK Hynix CEO: Intel business valuation is fair, Kioxia shares will not be sold

SK Hynix announced last week that it would acquire Intel's NAND flash memory and storage business for US$9 billion, including Intel's NAND SSD business, NAND components and wafer business, and a NAND flash memory manufacturing plant in Dalian.

According to the Korea Herald, SK Hynix CEO Lee Seok-Hee recently said, "I think the deal is not expensive. The price fully reflects the value of Intel's assets, including SSD performance and its solutions. The valuation is fair."

The deal is expected to enhance the competitiveness of SK Hynix's memory solutions in the NAND flash memory sector and is expected to help the company become the world's second-largest NAND flash memory chip maker.

However, it should be noted that SK Hynix's stock price has continued to fall since the announcement of the deal. Analysts pointed out that investors are obviously worried that the chipmaker will have to pay a lump sum in a short period of time.

Under the agreement, SK Hynix must first pay Intel US$7 billion by the end of 2021, and the remaining US$2 billion by March 2025.

South Korean analysts predict that SK Hynix may sell its shares in Kioxia (formerly Toshiba Memory).

However, Lee Seok-hee hinted that such a thing might not happen right now.

Lee Seok-hee said, "The reason we invested in Kioxia is not for short-term returns, but to create a new partnership opportunity and a long-term ecosystem," he further stated. "As Kioxia's IPO has been delayed, we will continue to focus on its strategic value."