Asian Tech Press (Dec 30) -- SK Hynix announced the successful completion of the first phase of the acquisition of Intel's NAND flash memory and SSD business. Following approval from China's State Administration of Market Supervision and Administration on December 22, SK Hynix completed the first phase of the follow-on process, including the takeover of the SSD business from Intel and its assets at its NAND flash memory manufacturing facility in Dalian, China. As consideration, SK Hynix will pay Intel $7 billion.

After that, SK Hynix is expected to pay the balance of $2 billion to acquire the remaining related tangible/intangible assets from Intel, including intellectual property related to the production and design of NAND flash memory wafers, R&D personnel, and employees at the Dalian facility, at the closing of Phase II in March 2025 or thereafter. The acquisition transaction will be finalized at that time.

The new U.S. subsidiary will operate the acquired Intel SSD business. The new company's name will be "Solidigm" (www.solidigmtechnology.com). A portmanteau of solid-state and paradigm, the name signifies Solidigm's commitment to creating a new solid-state paradigm to deliver unparalleled customer service and revolutionize the storage industry.

Solidigm will be headquartered in San Jose, California, and will be responsible for product development, manufacturing and sales of the acquired Intel SSD business, with SK Hynix President and Co-CEO Seok-Hee Lee serving as the company's Executive Chairman and leading the integration process after the first phase of closing. Meanwhile, Rob Crooke, former senior vice president of Intel, will be appointed as CEO of the company.

SK Hynix, Solidigm, and Intel will work closely together until the deal is finalized.