Intel and SK Hynix have finalized an $8.85 billion transaction involving Intel's NAND flash memory operations, marking the conclusion of a two-phase deal initiated in 2020. In the first phase of the transaction, SK Hynix acquired Intel's SSD division along with a NAND production facility in Dalian, China, for $6.61 billion. The Dalian facility was later rebranded as Solidigm. Notably, this phase transferred only the physical assets and operational facilities, leaving behind critical intellectual property, research and development infrastructure, and specialized technical staff. The second phase, finalized with a payment of $1.9 billion this Tuesday, addressed these remaining components. With this payment, SK Hynix secured full rights to Intel's proprietary NAND technology, R&D resources, and the technical workforce dedicated to NAND operations.

During the transition period, Intel maintained control over these elements, which limited integration between Solidigm and Intel's NAND teams. This separation was designed to manage operational risks and gradually transfer capabilities. Completing this deal helps with a strategic restructuring of Intel's portfolio as it shifts focus toward high-growth areas such as AI chip development, foundry services, and next-generation semiconductor manufacturing. A $1.9 billion financial injection is perfect in time for Intel Foundry business, burning billions per year, to offset some of the losses. For SK Hynix, consolidating the complete range of Intel's NAND operations enhances its competitive position in the global NAND market, providing access to established technologies and key industry expertise. This finalization is part of a broader trend where companies divest from commoditized memory products to concentrate on more advanced semiconductor solutions like AI chips and other accelerators, which are enjoying higher margins and a better business outlook.