Intel sells NAND business to Hynix

Intel is to sell its NAND business to Hynix for $9 billion.

The 3D XPoint product line – Intel’s phase change memory used in Optane SSDs – will not be included in the deal. Optane is a strategic component of Intel’s offering in the datacentre.

The US SSD business is included as well as Intel’s NAND fab in Dalian, China.

In Q2 Intel’s memory unit, including 3D XPoint-based Intel Optane memory modules, grew sales 19% y-o-y to $1.3 billion for a $300 million profit. In 2019, the unit made a $600 million loss.

Although Intel was founded as a memory company in 1968, it has been contemplating exiting the market for some years.

It is up against Samsung, Kioxia, Western Digital, Micron and Hynix in the NAND business and is the only one of those with a single digit market share.

Last year Intel sold its mobile modem chip business to Apple and this year it sold its home networking chip business to MaxLinear.