South Korean chipmaker SK Hynix mentioned on Wednesday it has gained merger clearance from the Chinese language antitrust authority for its $nine billion acquisition of Intel Corp’s NAND and SSD (solid-state power) industry, clearing the overall hurdle to final touch of securing regulatory approval in 8 jurisdictions.
Final October, the U.S. chip large and SK Hynix reached the purchase deal. Following the settlement, SK Hynix received nods from watchdog companies in South Korea, the U.S., the Eu Union, Taiwan, Brazil, Britain and Singapore.
SK Hynix mentioned in its remark: “SK Hynix sincerely welcomes and appreciates the State Management of Marketplace Legislation’s merger clearance for the deal. SK Hynix will improve its competitiveness of NAND Flash and SSD industry by way of proceeding the remainder post-merger integration procedure.”
The purchase, which is SK Hynix’s greatest acquisition deal, will lend a hand SK Hynix to make bigger its NAND SSD industry and slim the distance with marketplace chief Samsung Electronics. In the meantime, Intel will proceed to retain optane industry to spend money on extra complex era, Intel mentioned remaining yr. The U.S. corporate plans to divest the NAND unit and double down on creating era, together with 5G community infrastructure, synthetic intelligence and edge computing.
SK Hynix will make the primary fee of $7 billion by way of the tip of this yr and the remainder $2 billion by way of March 2025, a spokesperson at SK Hynix showed. As soon as the deal completes, the South Korean chipmaker will take over Intel’s NAND SSD, NAND element and wafer companies (together with NAND-related highbrow assets and workers), and its NAND reminiscence production facility in Dalian.
There was worry that SK Hynix won’t obtain China’s permission for the deal amid the tensions between the U.S. and China. SK Hynix mentioned the approval comes on the proper time and not using a important extend because the deal “is deemed mutually really helpful” for all 3 international locations.
China’s State Management for Marketplace Legislation mentioned in its remark on Wednesday that it had licensed, however with plenty of prerequisites that may remaining for 5 years.
The prerequisites come with that SK Hynix will have to make bigger its manufacturing amount of PCIe and SATA enterprise-class solid-state arduous disks merchandise, and provide the goods at truthful, affordable and nondiscriminatory costs, in line with the remark. It additionally mentioned that SK Hynix will have to now not drive consumers in China to completely acquire merchandise from SK Hynix or firms managed by way of SK Hynix.