SK Hynix said on Thursday that it has completed the first phase of its acquisition of Intel’s NAND and solid-state drive (SSD) business.
The South Korean chipmaker acquired Intel’s SSD business based in the US and their NAND flash fab in Dalian, China, after Chinese authorities approved the deal earlier this month.
SK Hynix will pay US$7 billion to Intel with the completion of the first phase.
In the second phase, which will now start and close in March 2025 after which there will be an additional payment of US$2 billion, the South Korean company will secure Intel’s remaining assets of its NAND business such as IP related to manufacturing and design of NAND flash wafers, research employees for NAND flash wafers and the workforce at the fab in Dalian as well as other associated assets, the company said.
SK Hynix also announced that it has formed a new subsidiary in the US called Solidigm, based in San Jose, to manage the newly acquired SSD business.
SK Hynix co-CEO Lee Seok-hee will be the first executive chairman of Solidigm, while Intel senior vice president Rob Crooke will become the new CEO of the subsidiary.