FILE PHOTO: The Intel logo is displayed on computer screens at SIGGRAPH 2017 in Los Angeles, California, U.S. July 31, 2017.  REUTERS/Mike Blake/File Photo (REUTERS)

Intel agrees to sell storage unit to SK Hynix 1$9 billion




Intel Corp. agreed to sell its Nand memory unit to South Korea’s SK Hynix Inc. for about $9 billion, part of a broader effort by the U.S. chipmaker to concentrate on its main business.

The Asian memory chipmaker said in a statement Tuesday it will pay 10.3 trillion won for the Intel unit, which makes flash memory components for computers and other devices. The acquisition includes Intel’s solid-state drive, Nand flash and and wafer businesses as well as a production facility in the northeastern Chinese city of Dalian.

Since taking over as Intel chief executive officer in 2019, Bob Swan has looked to sell several units that aren’t part of the company’s focus on processors for personal computers and servers.

The Santa Clara, California-based company has delayed production of important upcoming chip lines and now lags behind some industry players in manufacturing technology. Intel shares are down about 9% so far this year, while the benchmark Philadelphia Semiconductor Index is up almost 29%.

Read more: Intel ‘Stunning Failure’ Heralds End of Era for U.S. Chip Sector

Shedding another non-core business could help Intel focus on fixing its chip technology woes. Despite the delays, the company’s server group has been performing well.

Last year, Intel unloaded its smartphone cellular modem group to Apple Inc. and earlier this year sold its home connectivity chips group to MaxLinear Inc. In July, the company also said it is considering moving away from manufacturing its own chips. Intel had previously said for several months it was exploring options for the flash group.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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