SK hynix has officially completed the $8.84 billion acquisition of Intel’s NAND division, marking one of the largest mergers and acquisitions in South Korea’s history. With the deal finalized, the company is now poised to expand its solid-state drive (SSD) business, with a focus on next-generation products for AI data centers.
Acquisition Finalized After Two-Phase Deal
The acquisition process began in October 2020 when SK hynix announced its plan to purchase Intel’s NAND business. The transaction was structured in two phases: the first phase, valued at $6.61 billion, was completed in December 2021, including the transfer of Intel’s Dalian production plant in China and the SSD business. The second phase, worth $2.24 billion, concluded on March 28, 2025, giving SK hynix full ownership of Intel’s NAND design assets, R&D operations, and production personnel.
Following the first phase, SK hynix launched its U.S. subsidiary, Solidigm, to manage the acquired SSD business. With the second phase now complete, the company gains full control over Intel’s NAND IP and manufacturing capabilities, solidifying its position in the global memory market.
Strategic Expansion in the SSD Market
SK hynix plans to leverage Intel’s NAND technology and production facilities to strengthen its enterprise SSD business, which is a key segment for AI data centers. During a shareholder meeting on March 27, Kwak Noh-jung, President of SK hynix, emphasized the importance of Intel’s Chinese fab for the company’s future growth.
“The Chinese fab is a major production facility for the company and is also quite important in responding to global memory demand,” Kwak said. “We will prioritize customer response within the scope of U.S. government regulations and continue to operate the Chinese fab.”
The company’s new NAND operational strategy will focus on developing high-bandwidth, ultra-high-capacity SSDs tailored for AI workloads. With the demand for AI semiconductors soaring, the enterprise SSD market is expected to grow 3.5 times compared to 2023.
Strengthening Global Competitiveness
By fully integrating Intel’s NAND business, SK hynix aims to enhance its competitiveness against major rivals, including Samsung Electronics and Micron Technology. The company plans to accelerate R&D efforts for next-generation NAND products, positioning itself to meet the rising demand for high-performance storage solutions driven by AI, cloud computing, and big data applications.
The acquisition also gives SK hynix greater production capacity and operational flexibility. The Dalian plant in China will play a crucial role in the company’s global supply chain strategy, helping SK hynix scale up production while navigating U.S.-China trade regulations.
Opportunities for Growth in AI Storage Solutions
The completion of the Intel NAND deal positions SK hynix to capitalize on the booming AI data center market, which requires high-speed, large-capacity SSDs for model training and inference tasks. With AI adoption accelerating across industries, the demand for high-performance NAND storage is expected to surge.
By integrating Solidigm’s expertise and Intel’s NAND technology, SK hynix aims to become a major player in the enterprise SSD segment, offering cutting-edge solutions for AI infrastructure. The company’s strategic focus on next-generation SSDs is expected to drive long-term revenue growth and strengthen its market position.
Key Takeaway
SK hynix’s $8.84 billion acquisition of Intel’s NAND division marks a significant milestone in the company’s expansion strategy. With full ownership of Intel’s NAND assets, SK hynix is well-positioned to lead the AI SSD market, leveraging its enhanced production capabilities and R&D expertise. As the demand for AI-driven storage solutions continues to grow, the company’s bold acquisition could prove to be a game-changer in the global semiconductor industry.
