US-based chipmaking giant Intel is selling its NAND business to SK Hynix, making an official exit from the NAND market. The business is sold for $9 Billion. The South Korean based chipmaker made the announcement of this acquisition. One of its acquisition includes a NAND fabrication facility in Dalian, China. SK Hynix has time to complete the payment and acquisition process by the end of 2021.
Trimming the fat
This step shouldn’t be surprising since Intel CEO did say he is cutting off the excess fat by selling away non-CPU businesses. Though server CPU business is holding on its own, it is not doing well against consumer CPU business. Intel has to be more assertive now that AMD Ryzen 5000 series is coming out in a few days. This will help Intel concentrate on consumer and enterprise computing chips.
SK Hynix benefits out of it, too!
But the business is also beneficial for SK Hynix. It expands its manufacturing ability. There are many competitors in the NAND business, but SK Hynix, Kioxia (Toshiba), Micron Technology and Samsung and three of the more known NAND manufacturers. NAND makers supplies to many of its clients used in many platforms, including Apple, Inc. What the NAND maker is not buying is Intel’s Optane division. According to Bloomberg, this deal should help SK Hynix surpass Kioxia’s revenue from production vis is the second-largest chipmaker.
It is likely we may not see Intel branded SSDs, or maybe Intel would continue having new SATA, PCIe and M.2 storage with non-Intel made chips. We’ll just have to wait and watch how this would turn out in the retail market. Intel makes some of good mid-range if note high-end performers within a certain category. Intel SSDs does have its moments but gets overshadowed by many other Tier 1 SSD makers- Kingston/ HyperX, Micron’s Crucial, Samsung and a few others to name a few.