SK hynix has officially announced that it has acquired Intel’s SSD division and NAND manufacturing facilities in Dalian, China, and the first phase has been completed. The new unit, which will be subordinate to the memory manufacturer, will be called “Solidigma”. With the experience of both companies, SK hynix aims to be a leading company on a global scale.
The memory giant will pay $ 7 billion in exchange for this deal. In the second phase of the transaction, intellectual property related to NAND flash production and design (IP), NAND R&D staff, Dalian plant workforce, and remaining assets related to the NAND business will be received from Intel. With the second phase, another $2 billion payment will be made and the entire transaction will end in March 2025.
The newly formed US subsidiary that will manage the newly acquired SSD division will be known as “Solidigm” (www.solidigmtechnology.com). Solidigm will be headquartered in San Jose, California, and will oversee product development, manufacturing and sales of the SSD unit previously acquired by Intel.
While SK hynix excels in mobile NAND flash, Solidigm appears to be a strong name in the enterprise SSD (eSSDs) market. Park Jung-ho, vice president and co-CEO of SK hynix, made some statements regarding the deal:
“ We sincerely welcome the Solidigm team members to join our family. This acquisition will present a paradigm-shifting moment for SK hynix’s NAND flash business to enter the global top-tier level. With this acquisition, SK hynix will go one step further towards becoming a global tier 1 technology company.”
SK hynix, Solidigm and Intel will collaborate with each other to successfully close the deal. How much will we hear about Solidigm in the future? Let’s wait and see.