Green light for SK Hynix's acquisition of Intel's NAND business
Credit: SK Hynix China's terms on the deal seem sensible, calling for assurances that the merged firms will not abuse their new market power. In particular, they concern the price limits of finished products and components, promises of expansion of the offer for the production of PCIe and SATA enterprise-class components for the next five years and issues such as product exclusivity and anti-competitive practices. It was October 2020 when the $ 9 billion agreement between SK Hynix and Intel was agreed. The deal resulted in SK Hynix becoming the owner of a wholly owned subsidiary using Intel's former NAND facilities in the United States. Intel will not completely exit the memory business, as it will retain the profitable Optane market.
It was announced in August that the US-based entity will be operated as a standalone, wholly owned company. SK Hynix. Also, it will get a new name / brand. Not bringing a brand into line with the current SK Hynix family is thought to help Intel NAND products maintain their focus on enterprise servers and storage, as it would be a misstep to lose customers in the wake of the deal by trying to move them to solutions. SK Hynix brand. In the spirit of continuity, current general manager of Intel NAND products, Robert Crooke, will remain at the helm of the NAND business.
if (jQuery ("# crm_srl-th_hardware_d_mh2_1"). is (": visible")) {console.log ("Edinet ADV adding zone: tag crm_srl-th_hardware_d_mh2_1 slot id: th_hardware_d_mh2"); } In a Reuters article, analysts suggest the deal will help SK Hynix compete better against market-leading rival Samsung. The transaction closes at the right time and the markets responded positively, but were not taken by surprise by this news (shares up 2% on the day). Since Intel NAND's purchase intentions were announced last October, SK Hynix's shares have risen approximately 55%. It remains to be seen whether the entire SK Hynix business (including the newly acquired Intel NAND portion) will be streamlined over the next few years. SK Hynix suggests it is considering unifying operations such as research and development and creating common standard components for the potential cost benefits such changes could offer.
