NEWS HIGHLIGHTS
- SK hynix will pay US $9 billion
for the Intel NAND memory and storage business, which includes the
NAND SSD business, the NAND component and wafer business, and the
Dalian NAND memory manufacturing facility in China.
- SK hynix aims to enhance the competitiveness of its NAND flash
solutions as one of the leading global semiconductor companies and
grow the memory ecosystem to the benefit of customers, partners,
employees and shareholders.
- Intel will retain its Intel® Optane™
business and intends to invest transaction proceeds in long-term
growth priorities.
SEOUL, South Korea and SANTA
CLARA, Calif., Oct. 19, 2020
/PRNewswire/ -- SK hynix and Intel today announced that they
have signed an agreement on Oct. 20,
KST, under which SK hynix would acquire Intel's NAND memory and
storage business for US $9
billion.
The transaction includes the NAND SSD business, the NAND
component and wafer business, and the Dalian NAND memory
manufacturing facility in China.
Intel will retain its distinct Intel® Optane™ business.
SK hynix and Intel will endeavor to obtain required governmental
approvals expected in late 2021. Following receipt of these
approvals, SK hynix will acquire from Intel the NAND SSD business
(including NAND SSD-associated IP and employees), as well as the
Dalian facility, with the first
payment of US $7 billion. SK hynix
will acquire from Intel the remaining assets, including IP related
to the manufacture and design of NAND flash wafers, R&D
employees, and the Dalian fab
workforce, upon a final closing, expected to occur in March 2025 with the remaining payment of US
$2 billion. Per the agreement, Intel
will continue to manufacture NAND wafers at the Dalian Memory
Manufacturing Facility and retain all IP related to the manufacture
and design of NAND flash wafers until the final closing.
With this acquisition, SK hynix aims to enhance the
competitiveness of its storage solutions, including enterprise
SSDs, in the rapidly growing NAND flash space, and further aims to
leap forward as one of the leading global semiconductor companies
in the industry. SK hynix expects that the transaction would enable
SK hynix to grow the memory ecosystem to the benefit of customers,
partners, employees and shareholders.
As the global leader in the semiconductor industry, Intel
possesses industry-leading NAND SSD technology and quadruple level
cell (QLC) NAND flash products.
For the first six months ended June 27,
2020, the NAND businesses represented approximately US
$2.8 billion of the revenue for
Intel's Non-volatile Memory
Solutions Group (NSG) and contributed approximately US $600 million to NSG operating income.
SK hynix developed the world's first Charge Trap Flash
(CTF)-based, 96-layer 4D NAND flash in 2018 and 128-layer 4D NAND
flash in 2019. SK hynix will combine Intel's solutions technology and manufacturing
capability in order to establish a higher value-added 3D NAND
solutions portfolio including enterprise SSDs.
Intel intends to invest transaction proceeds to deliver
leadership products and advance its long-term growth
priorities, including artificial intelligence, 5G networking and
the intelligent, autonomous edge.
Intel and SK hynix will work together to ensure a seamless
transition for customers, suppliers and employees. The two
companies will work collaboratively as they did recently with DDR5,
to better serve the growing demand from the memory-based
semiconductor ecosystem.
"I am pleased to see SK hynix and Intel's NAND division, which have led the NAND
flash technology innovation, work to build the new future
together," said Seok-Hee Lee, Chief
Executive Officer (CEO) of SK hynix. "By taking each other's strengths and technologies, SK hynix
will proactively respond to various needs from customers and
optimize our business structure, expanding our innovative portfolio
in the NAND flash market segment, which will be comparable with
what we achieved in DRAM."
Bob Swan, Intel CEO said, "I am
proud of the NAND memory business we have built and believe this
combination with SK hynix will grow the memory ecosystem for the
benefit of customers, partners and employees. For Intel, this
transaction will allow us to further prioritize our investments in
differentiated technology where we can play a bigger role in the
success of our customers and deliver attractive returns to our
stockholders."
Click HERE to download the PDF copy
Advisors
Citi served as financial advisor and Skadden, Arps, Slate,
Meagher & Flom LLP, K&C and Fangda Partners served as legal
counsel to SK hynix. BofA Securities served as financial advisor
and Munger, Tolles & Olson LLP, Wilmer
Cutler Pickering Hale and Dorr LLP, Linklaters LLP and Bae,
Kim & Lee LLC served as legal counsel to Intel.
About SK hynix
SK hynix, headquartered in Korea, is the world's top tier
semiconductor supplier offering Dynamic Random Access Memory chips
("DRAM"), flash memory chips ("NAND flash") and CMOS
Image Sensors ("CIS") for a wide range of distinguished customers
globally. SK hynix's shares are traded on the Korea Exchange, and
the Global Depository shares are listed on the Luxemburg Stock
Exchange. Further information about SK hynix is available at
www.skhynix.com, news.skhynix.com.
About Intel
Intel (Nasdaq: INTC) is an industry leader, creating
world-changing technology that enables global progress and enriches
lives. Inspired by Moore's Law, we continuously work to advance the
design and manufacturing of semiconductors to help address our
customers' greatest challenges. By embedding intelligence in the
cloud, network, edge and every kind of computing device, we unleash
the potential of data to transform business and society for the
better. To learn more about Intel's innovations, go to
newsroom.Intel.com and Intel.com.
© Intel Corporation. Intel, the Intel logo and
other Intel marks are trademarks of Intel Corporation or its
subsidiaries. Other names and brands may be claimed as the property
of others.
CONTACTS:
|
For SK hynix
Global Public Relations
|
|
Jaehwan Kevin Kim
E-Mail: global_newsroom@skhynix.com
|
|
Sejin Julia Yoo
E-Mail: global_newsroom@skhynix.com
|
|
Eun Suk Yixi Lee
E-Mail: global_newsroom@skhynix.com
|
For Intel
|
Tony Balow
Investor Relations
+1 (503) 696 0469
tony.balow@intel.com
|
Cara Walker
Media Relations
+1 (503) 696-0831
cara.walker@intel.com
|
Forward Looking Statements
This announcement has been prepared by SK hynix and Intel
exclusively for information purposes. It does not constitute or
include any advice or recommendation by SK hynix or Intel (or any
other person) regarding the securities of SK hynix, including its
Global Depositary Receipts (GDRs), or Intel or as to the merits of
any transaction or the making of any investment decision. This
announcement is not an offer to sell or a solicitation of an offer
to buy or exchange or acquire securities. It does not constitute or
include any confirmation or commitment by SK hynix or Intel (or any
other person) regarding the present or future value of the business
of SK hynix, Intel's NAND memory and storage business or Intel,
their securities, affiliates or any of their respective their
assets.
Statements in this press release that refer to future plans and
expectations, including with respect to the transactions
contemplated by SK hynix's agreement to acquire Intel's NAND memory
and storage business, NAND manufacturing and supply arrangements
and other relationships between SK hynix and Intel, and SK hynix's
and Intel's business and investment plans, are forward-looking
statements that involve a number of risks and uncertainties. Words
such as "anticipates," "expects," "intends," "goals," "plans,"
"believes," "seeks," "estimates," "continues," "may," "will,"
"would," "should," "could," and variations of such words and
similar expressions are intended to identify such forward-looking
statements. Statements that refer to or are based on estimates,
forecasts, projections, uncertain events or assumptions, including
statements relating to the benefits of the transactions
contemplated by SK hynix's agreement to acquire Intel's NAND memory
and storage business; the timing and closing conditions of such
transactions, including with respect to applicable governmental
approvals; anticipated trends in SK hynix's or Intel's businesses
or the markets relevant to them; investment returns and benefits;
and future products and technology and the availability and
benefits of such products and technology also identify
forward-looking statements. Such statements are based on current
expectations and involve many risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in these forward-looking statements. Important factors that
could cause actual results to differ materially from current
expectations include, among others, that governmental authorities
may not approve the transactions; that the first or second closings
of the transactions may not occur or may be delayed; that expected
financial or other benefits of the transactions may not be
realized; that litigation related to the transactions or
limitations or restrictions imposed by regulatory authorities may
delay, permanently restrain or negatively impact the transactions;
that unanticipated transition costs may be incurred; that the
transactions may not be supported by third parties; that the
announcement and pendency of the transactions may adversely affect
SK hynix's, Intel's or the purchased and sold division's business
relationships, operating results, or their business in general;
that actions by competitors may negatively impact results; and that
there may be negative changes in general economic or geopolitical
conditions affecting the regions or the industries in which SK
hynix and Intel operate; as well as the factors set forth in SK
hynix's earnings release dated July 23,
2020 and SK hynix's most recent published business reports
and Intel's earnings release dated July 23, 2020, which is
included as an exhibit to Intel's Form 8-K furnished to the SEC on
such date, and Intel's SEC filings, including the company's most
recent reports on Forms 10-K and 10-Q. Copies of SK hynix's
earnings releases and business reports may be obtained by visiting
SK hynix's Investor Relations website at
https://www.skhynix.com/eng/ir/irOverview.jsp. Copies of Intel's
Form 10-K, 10-Q and 8-K reports may be obtained by visiting Intel's
Investor Relations website at www.intel.com or the SEC's website at
www.sec.gov. Neither SK hynix nor Intel undertakes, and both SK
hynix and Intel expressly disclaim any duty, to update any
statement made in this press release, whether as a result of new
information, new developments or otherwise, except to the extent
that disclosure may be required by law.
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SOURCE SK hynix Inc.