Intel Corp. is nearing a deal to sell its Nand memory unit to South Korea’s SK Hynix Inc. for about US$10 billion, part of a broader effort by the U.S. chipmaker to concentrate on its main business, the Wall Street Journal reported.
The unit makes flash memory components for computers and other devices. 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.
In a note to investors, Wells Fargo Securities analysts said the deal would be positive. The chipmaker’s stock rose less than 1 per cent, while Micron Technology Inc., a U.S.-based maker of Nand flash memory, climbed almost 4 per cent. Western Digital Corp., which makes storage devices, jumped more than 8 per cent.
The deal could be announced as early as Monday, the Wall Street Journal said. An Intel spokesman declined to comment.
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 8 per cent so far this year, while the benchmark Philadelphia Semiconductor Index is up almost 30 per cent.
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.