Editor? /? Zhang
Design? /? Zhao Haoran
Source? /? "Financial Times", by Edward? White, Richard? Waters, opinion? law
Intel has agreed to sell part of its storage business to South Korean chip maker Hynix (SK? Hynix), which is the latest turmoil in the global computer chip industry.
Hynix, headquartered in Seoul, said in a statement submitted to the Korea Stock Exchange on October 20th, 65438/KLOC-0 that it would acquire Intel's Nand flash memory and storage business in the next five years. The acquisition includes related components and wafer equipment, as well as Intel's manufacturing plant in Dalian, China.
Intel CEO Bob Swan (Bob? Swan) said in a statement with Hynix: "This transaction will give us further priority to invest in differentiated technologies, and we can play a greater role in helping customers succeed and bringing attractive returns to shareholders." As for the specific details, Intel did not disclose further.
Intel will keep its patented memory chip technology Optane, which is a key part of consolidating its leading position in data center infrastructure.
The transaction needs to be approved by the regulatory authorities. At present, Intel is making a series of adjustments to get rid of non-core business. For this American chip manufacturer, the sale of Nand flash memory (a chip that provides long-term data storage) shows that Intel regards it as a non-strategic business and chooses to quit this business field.
Intel said that it will invest the proceeds of this transaction in areas such as 5G networks and artificial intelligence.
After Intel sold its smartphone modem business to Apple last year, the sale of Nand flash memory business is Swan's latest move to refocus on fewer markets. In July this year, Intel said that it was considering outsourcing more chip manufacturing business after delaying the launch of the next-generation processor chip for six months.
The pressure of Nand market in 20 19 damaged Intel's profit margin, but this year's price rebound promoted the rebound.
Hynix CEO Li Xixi (Lee? Seok-hee) said that the acquisition will contribute to the Nand status of Korean companies, "which is comparable to our achievements in the field of Dram".
In terms of Dram chips that allow devices to perform multi-tasks, Hynix's market share is second only to Samsung, behind Micron Group of the United States and nanya technology of Taiwan Province Province. Technology).
The acquired Intel business will make Hynix the second largest Nand chip manufacturer, ahead of Japan's Kioxia and Micron, and Samsung is the leader in the Nand market.
This transaction will add another bright spot to the M&A year of the semiconductor industry. The M&A transaction volume in 2020 is expected to become the second highest year on record, second only to 20 15. Previously, NVIDIA acquired chip design group ARM, Analog Semiconductor Technology Company (Analog? Devices) acquired Maxim Integrated Products Company (Maxim? Comprehensive? Product).
The $9 billion acquisition, first reported by The Wall Street Journal, is one of the largest technology deals in Korean history. Samsung Electronics acquired Harman International Industries (Harman? International? Industry) to form competition.
The impact of this acquisition on both parties.
For Intel, it is beneficial to sell the flash memory business to Hynix. American semiconductor giant wants to withdraw from Nand market. Nand chips used in computer hard disk drives and USB flash drives are on the verge of elimination. The real action is on Dram microprocessors with higher profit margins, from Google Cloud Server to Apple iPhone, which are widely used.
In addition, Intel lacks the scale of Nand chips. In terms of market share, it ranks sixth, far behind. Hynix's funds should help Intel find early missed opportunities in the field of mobile devices, so as to do better in the fields of artificial intelligence and 5G chips.
This transaction is attractive to Hynix in the short term, which will make this Korean group the second largest Nand chip manufacturer in the world, and its profitability will also benefit. The operating profit margin of Intel's Nand business is about 20%, while Hynix's own profit from this business is only a low single digit.
Intel's business in Dalian will definitely attract Hynix, and these factories will improve their business in China. China is Intel's largest overseas market. China imports more than $300 billion worth of chips every year, the largest part of which comes from South Korea.
But things are changing. The sanctions against China's technology companies and the decline in demand for electronic products have aggravated the continuous decline in demand for chips. Hynix's expectation of sales improvement in the third quarter is misleading, most of which will come from Huawei's one-time panic orders before the ban takes effect.
Chips in data centers are exceptions to the pessimistic rule. The storage products of Intel's Optane product line are used in this field, but unfortunately for Hynix, Intel still keeps this department.
There are also deep structural problems. Nand flash memory chips have been commercialized for a long time. In the third quarter alone, the average price dropped by about one tenth. In South Korea, competitor Samsung's 36% share in the Nand mobile phone market will intensify the price war.
Hynix's historical operating profit is 7.5 times the annualized rate, which is relatively low. But this is not surprising, because China manufacturers are expanding aggressively. Open market investors don't like assets whose cash flow seems to be decreasing, and Hynix's share price will reflect their doubts.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.