January 20, 2022

Intel Sells SSD Enterprise to SK hynix as new Subsidiary Solidigm

In a quick information launch from Intel this afternoon, the chip agency has introduced that it has closed on the primary stage of its deal to promote its SSD enterprise to SK hynix. As of at the moment, SK hynix has now formally acquired the majority of Intel’s NAND and SSD companies, in addition to the corporate’s NAND fab in Dalian, China. Intel will proceed to carry a small stake till 2025, and within the meantime Intel’s former SSD property have been spun-off into a brand new SK hynix subsidiary, Solidigm.

The Intel-SK hynix deal was first introduced in October of 2020, with the 2 firms inking a deal to switch over Intel’s NAND and SSD operations over to SK hynix over a a number of yr timeframe. The deal, valued at $9 billion, would see Intel retain all of their Optane/3D XPoint know-how and patents, whereas SK Hynix would obtain all of Intel’s NAND-related enterprise, together with the Dalian NAND fab and Intel’s SSD enterprise pursuits.

Now, with approval of the deal from all the needed regulatory our bodies, the 2 firms have been in a position to shut on the primary a part of the deal. The “first closing,” as Intel places it, has transferred the Dalian fab in addition to a part of Intel’s SSD IP portfolio to SK hynix. Some staff are additionally being transferred – basically all those that aren’t working for the fab or are concerned in R&D. In return, SK hynix has paid Intel the primary $7 billion of the deal.

The remainder of the deal is ready to shut in three and a half years from now, in or round March of 2025. From now till then, Intel will proceed to make use of the Dalian fab to fabricate NAND wafers. To take action, Intel has held on to a few of their NAND-related IP, their R&D staff, and the fab staff. All of these property will then lastly be transferred to SK hynix as soon as the deal totally closes and SK hynix pays Intel the ultimate $2 billion.

Lastly, SK hynix is taking the Intel property they’ve acquired up to now and inserting them into a brand new spin-off firm, Solidigm. The standalone subsidiary, whose title is outwardly a play on “paradigm” and “stable state storage” has setup store in San Jose, and is being run by former Intel Non-Unstable Reminiscence Options Group SVP and GM, Rob Crooke. Solidigm, in flip, has inherited Intel’s present NAND SSD product lineup; so Intel’s 660p and 670p shopper SSDs, in addition to their D3/D5/D7 information heart SSDs, at the moment are within the technique of turning into Solidigm merchandise.

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