Intel Corporation announced on Tuesday the sale of its NAND memory business to SK Hynix for approximately $9 billion, marking a significant shift in the company’s focus. The deal, expected to close in late 2025, comes as Intel aims to streamline operations amid increasing competition in the semiconductor industry.

“With this transaction, we are sharpening our focus on our core business areas while maximizing shareholder value,” said Intel CEO Pat Gelsinger. The company had struggled with its NAND business, which has faced declining prices and market share losses.

The sale includes Intel’s manufacturing facility in Dalian, China, and its NAND SSD business. SK Hynix plans to leverage these assets to strengthen its position in the memory market, which has seen significant growth driven by demand for data centers and consumer electronics.

Intel’s decision to offload its NAND division follows a trend in the industry where major players are consolidating to adapt to shifting consumer demands. The transaction also highlights the challenges Intel has faced in recent years, as its stock market value remains below that of competitors like Micron Technology, which is currently valued at more than double Intel’s market cap.

Founded in 1968, Intel has long been a leader in the semiconductor field, but has recently been focusing on improvements in its core microprocessor and graphics businesses. This divestiture underscores Intel’s strategy to redirect resources to areas with higher growth potential.

The NAND memory market has become increasingly competitive, with demand outpacing supply for certain products. Analysts believe that this sale may help Intel stabilize its finances and refocus its efforts on innovations in AI and edge computing technologies, where it sees future growth opportunities.

Intel’s move comes as the global semiconductor industry grapples with volatility and supply chain challenges, exacerbated by geopolitical tensions and the ongoing effects of the pandemic.

Source: news source