Intel Corp. agreed to promote its Nand reminiscence unit to South Korea’s SK Hynix Inc. for about $9 billion, a part of a broader effort by the U.S. chipmaker to focus on its predominant enterprise.

The Asian reminiscence chipmaker mentioned in an announcement Tuesday it’ll pay 10.three trillion received for the Intel unit, which makes flash reminiscence elements for computer systems and different gadgets. The acquisition consists of Intel’s solid-state drive, Nand flash and and wafer companies in addition to a manufacturing facility within the northeastern Chinese language metropolis of Dalian.

Since taking on as Intel chief govt officer in 2019, Bob Swan has appeared to promote a number of models that aren’t a part of the corporate’s concentrate on processors for private computer systems and servers.

The Santa Clara, California-based firm has delayed manufacturing of vital upcoming chip strains and now lags behind some trade gamers in manufacturing expertise. Intel shares are down about 9% thus far this 12 months, whereas the benchmark Philadelphia Semiconductor Index is up virtually 29%.

Learn extra: Intel ‘Gorgeous Failure’ Heralds Finish of Period for U.S. Chip Sector

Shedding one other non-core enterprise may assist Intel concentrate on fixing its chip expertise woes. Regardless of the delays, the corporate’s server group has been performing effectively.

Final 12 months, Intel unloaded its smartphone mobile modem group to Apple Inc. and earlier this 12 months bought its residence connectivity chips group to MaxLinear Inc. In July, the corporate additionally mentioned it’s contemplating shifting away from manufacturing its personal chips. Intel had beforehand mentioned for a number of months it was exploring choices for the flash group.

This story has been revealed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.

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