Ed Lin

Intel received $1.9 billion from the final closing of a deal with SK Hynix.

In October 2020, Intel agreed to sell its NAND memory-fabrication facility operations and business in Dalian, China, to Seoul-based memory-chip maker SK Hynix. The deal was set to be conducted through two closings.

With the first closing, in December 2021, Intel received $7 billion for its fab assets and the NAND SSD business, including the transfer of certain associated intellectual properties and employees. With the first closing, Intel entered an agreement to manufacture and sell NAND memory wafers at the plant for SK Hynix to purchase.

On March 27, Intel received about $1.9 billion from the second and final closing that transferred Intel's NAND memory technology and manufacturing business to SK Hynix. In connection with the second closing, the NAND wafer manufacturing and sale agreement that was entered into at the first closing was terminated.

In response to a request for comment, Intel said, "Intel has completed the second and final close in the sale of its NAND and SSD business to SK Hynix. The final proceeds further strengthen Intel's balance sheet and enhance its financial flexibility."

Shares of Intel were down 4% on Friday, while the broader market was falling after a slightly hotter-than-expected inflation report, with the Nasdaq Composite off 2.2%.

Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at ed.lin@barrons.com

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March 28, 2025 13:16 ET (17:16 GMT)

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