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Home Intel

Intel deal to help SK Hynix triple memory revenue in five years

Intel deal to help SK Hynix triple memory revenue in five years

Under the terms of the deal between Intel and SK Hynix, the latter will receive full control over the enterprise of the first in China only by March 2025, at the same time the final settlement will be made with the transfer of the remaining $ 2 billion of the total amount. The Korean manufacturer already expects to triple its memory revenue in five years.

sk hynix
SK Hynix

It is known that the South Korean company SK Hynix needs Intel assets in the field of NAND memory production not only to increase its share in the world market but also to strengthen its position in the growing server market segment. The Korean brand’s proprietary NAND is primarily used in mobile devices. According to Business Korea, citing the comments of the head of SK Hynix Lee Seok-hee, the purchase of Intel assets will help the company triple its revenue from NAND sales in five years, breaking the $ 13.4 billion bar.

The deal with Intel, according to the head of SK Hynix, will allow the Korean manufacturer to strengthen its image as one of the leading companies in the production of solid-state memory in addition to its already existing leadership in the production of RAM. In 2019, SK Hynix’s revenue from the sale of NAND memory reached $ 4.55 billion. From the end of next year, Intel will start supplying SK Hynix with memory produced at an enterprise in Dalian, China, but will finally transfer it to the buyer only in March 2025. SK Hynix also expects to participate in the IPO of Kioxia, which already has a stake. According to the leadership of the Korean company, investments in these two areas at once do not contradict the interests of business.

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