S. Korea’s SK Hynix completes first phase of $9bn Intel NAND business buy

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S. Korea’s SK Hynix completes first phase of $9bn Intel NAND business buy

SK Hynix Inc., the S. Korean multinational supplier of random-access memory and flash memory chips, had told in a statement later last week that it had accomplished the first phase of its purchase of Intel Corp’s NAND flash memory chip business, as the world’s second-largest chipmaker had received a go-ahead signal over the acquisition deal from regulatory authorities of eight countries across the globe including China.

Besides, SK Hynix Inc., the world’s third-largest chipmaker would pay off a $7 billion out an agreed total of $9 billion, the S. Korean chipmaker had told in a statement later last week. If truth is to be spoken, Intel Corp had long been vying to vent out a way towards increasing its profit margin, while latest SK Hynix Inc deal appeared to have provided the American multinational chipmaker with an opportunistic window to shrug off a low-profit margin NAND chip business while focusing more on smaller, yet more profitable Optane memory business.

Optane memory offers a long-term smart memory technology which in effect helps remember the most frequently accessed files, programs and applications. On the flipside of the coin, the $9bn NAND memory chip acquisition deal would be the largest-ever takeover for SK Hynix, which has reportedly been looking to boost up its capacity to build NAND chips as part of a separate business stratagem that involves a higher production to increase revenues.

SK Hynix completes part of Intel Corp’s NAND chip business acquisition

Meanwhile, following the statement, Vice Chairman and Co-CEO of SK Hynix, Park Jung-ho had said, “This acquisition will present a paradigm shifting moment for SK Hynix's NAND flash business to enter the global top tier level”.

Seoul-listed shares’ prices of SK Hynix Inc reported a 1.56 per cent in weekly gains last week after jumping as much as 3.15 per cent following the announcement, rounding off Friday’s market at KRW131,000 ($109.96) apiece.