Intel might be stepping up its game in the processing and GPU space but it appears to be wanting to leave its storage business behind. The company has announced it is selling its SSD business to SK Hynix in a deal worth $9 billion. The deal sees the chipmaker exit the flash memory and storage game including all of Intel’s NAND SSD, component, and wafer businesses, along with the company’s NAND factory in Dalian, China going over to SK Hynix, with only Intel’s high-end Optane memory technology remaining with the company.
Intel CEO Bob Swan reveals that this move – which follows them selling their 5G modem business to Apple last year – is all part of the company’s plans to prioritize their investments and look to focus on achieving success to both customers and shareholders in markets where they know they can perform and make a profit:
For Intel, this transaction will allow us to further prioritize our investments in differentiated technology where we can play a bigger role in the success of our customers and deliver attractive returns to our stockholders.
It’s an interesting move for the company, considering how important memory technology is in the computing space currently. Perhaps in focusing on technology that offers higher margins, they can better focus on improving their semiconductor business to gain on their rivals, like AMD. It will take a while for this deal to go through as it still needs to be approved by the various regulators, but when it does it will be interesting to see how Intel evolves and whether it can capitalise on this renewed focus.
Last Updated: October 23, 2020