Back in 2020, SK hynix signed an agreement with Intelligence take back SSD and NAND Business. This agreement would allow SK Hynix to diversify its product portfolio and increase its market share. While Intel would now focus on their small but lucrative Optane memory to try to propel this technology forward. Therefore, this deal was a win-win for both parties and only one hurdle stood between the acquisition.
This obstacle was the chinese antitrust (Chinese State Administration for Market Regulation) which was to first investigate whether this agreement violated competition laws and was monopolistic. The current acquisition was priced at $ 9 billion US dollars, so it’s understandable that it took a long time to clear customs. However, SK hynix has just released a Press release stating that they have passed the inspections, completing the first part of the acquisition in the process.
A new start
Now Intel SSD and NAND The products are officially part of SK hynix as the company now owns this division. That being said, these products will not be sold under the SK hynix name. A new company has been formed under SK hynix which will sell Intel’s existing line of SSDs and develop all future products to come. The new entity will bear the mark “”Solid”.
Solid already has a website that has the popular Intel 660p and 670p SSDs up there with detailed specs and everything. SK hynix aims to make Solidigm a market leader in storage solutions as it seeks to serve both commercial and industrial applications. Solidigm currently has no updates for upcoming products.
the current co-CEO and chairman of SK hynix, Seok-hee will be appointed executive chairman of the new company. While, Rob crooke, former senior vice president of Intel will be named CEO of Solidigm. Solidigm will act as a wholly owned subsidiary under SK Hynix and will be headquartered in San jose, California, making it a US-based subsidiary.
What the future holds
It is important to mention that the agreement is not yet fully concluded. It will likely take a long time before Intel’s entire asset directory is integrated into Solidigm. This is why Seok-hee will also lead the post-merger integration processes after the 1st close. SK hynix, Solidigm and Intel will cooperate in the future to successfully conclude the agreement in the future. But, there is one more thing.
As mentioned earlier, this was only the first phase of the acquisition. There is another phase which will see the rest of Intel’s assets in regards to its SSD and NAND business become part of SK hynix / Solidigm. This includes “Intellectual property related to the manufacture and design of NAND flash wafers, R&D employees for NAND flash wafers, Dalian facility’s workforce, and other associated tangible / intangible assets.” . The second phase will likely end in or after March 2025, when SK hynix pays the balance $ 2 billion dollars, completely completing the transaction. Until then, Intel will keep some of the assets and continue to manufacture chips for SK hynix at its factory in Dalian.
This deal will apparently make SK hynix a “1st level technology company“and help make a paradigm shift for SK hynix when it comes to NAND business, placing it among the world leaders. SK hynix is already the largest manufacturer of storage solutions and one of the largest in the world. world when it comes to flash memory, so this acquisition will only help them move further up the rankings.It’s not yet clear how this deal will affect their scale, but given that a whole new brand has been formed for it, it’s unclear how this deal will affect their scale. i think it’s safe to say that SK hynix is about to take it to the next level.
Solidigm is poised to become the next major global semiconductor company, presenting an unprecedented opportunity to reinvent the memory and data storage industry. We are unwavering in our commitment to leading the data industry in a way that can truly fuel human advancement.
You can read the full press release here.