Seoul: Intel has agreed to a $9 billion deal to promote most of its reminiscence enterprise to South Korea’s SK Hynix because it strikes towards extra numerous applied sciences whereas shedding a significant Chinese language manufacturing unit at a time of deepening commerce friction between Washington and Beijing.
Intel mentioned it’ll maintain its “Optane” enterprise of extra superior reminiscence merchandise, which analysts say are principally produced in america.
In response to the plan confirmed by the businesses on Tuesday, SK Hynix will purchase Intel’s NAND reminiscence chip and storage enterprise, together with a associated manufacturing website within the northeastern Chinese language metropolis of Dalian. SK Hynix mentioned the businesses count on to get required governmental approvals for the deal by late 2021.
The transaction, if accomplished, may reportedly make SK Hynix the world’s second-largest supplier of NAND flash reminiscence chips behind Samsung Electronics, one other South Korean chip big.
Demand for flash reminiscence has strengthened in latest months attributable to shopping for of non-public computer systems and servers because the coronavirus pandemic forces hundreds of thousands to earn a living from home.
Intel mentioned it plans to speculate proceeds from the transaction into advancing long-growth priorities, together with applied sciences associated to synthetic intelligence and fifth-generation wi-fi networks.
“This transaction will enable us to additional prioritize our investments in differentiated expertise the place we will play a much bigger position within the success of our prospects and ship enticing returns to our stockholders,” Bob Swan, Intel’s CEO, mentioned in a press release.
This story has been printed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.