Chip industry shock! Intel plans to sell NAND flash business for $9 billion

category:Finance
 Chip industry shock! Intel plans to sell NAND flash business for $9 billion


Source: SK Hynix Chinese official website

Boost the competitiveness of enterprise SSD

Under the agreement, Intel will continue to manufacture NAND wafers at the Dalian flash manufacturing plant and retain intellectual property rights (IP) related to the manufacture and design of NAND flash wafers until the final delivery date.

Sk Hynix subsequently said that through the acquisition, the company aims to enhance the competitiveness of storage solutions including enterprise SSD in the rapidly growing NAND flash memory field, and further become one of the worlds leading semiconductor enterprises. The deal will allow SK Hynix to develop a storage ecosystem that will bring more benefits to customers, partners, employees and shareholders.

Sk Hynix stock price trend since May this year

Source: Official Website of the company

The acquisition is limited to 3dnandflash related technologies and capacity, and does not include 3d-xpoint, an emerging memory technology that has attracted considerable market attention recently. At the same time, at present, Intel still insists on flotinggate as the main production structure of 3dnandflash, which is different from the chargetrap structure adopted by SK Hynix and other manufacturers, and has quite different technical difficulties in etching.

Fierce competition in the market

Source: China Flash Market

On the other hand, after the sale of the storage factory, we can focus on CPU business and improve the earnings. From 2016 to 2018, Intels nonvolatile storage solutions business suffered losses of US $540 million, US $260 million and US $5 million respectively, and it did not start to make profits until 2019. In addition to the continuous investment, the storage market is ups and downs, once encountering industry headwinds, large losses are inevitable. Therefore, it is not difficult to understand that under the leadership of the current CEO of financial background, Intel, which has always been pursuing high profits, sold nandflash manufacturing plant.

This deal will allow us to focus more on investing in differentiated technologies, which will enable us to play a more important role in the success of our clients and deliver substantial returns to investors, Mr. sribe said

The decline of memory price is inevitable

In the first half of the year, affected by the epidemic situation, in order to ensure the delivery of products or out of prudent consideration, downstream customers of the original manufacturer of the storage tank increased their stock preparation efforts, and the volume and price of products rose simultaneously. However, since the second half of the year, the downturn in downstream demand has been transmitted to upstream manufacturers, and the downward trend of product prices is inevitable.

According to Jibang consulting, even if there is a traditional sales peak season in the third quarter and Apples new machine stock, due to the impact of the epidemic in the first half of the year and the accumulation of terminal sales inventory, the average price drop of nandflash will be as high as 10%. In addition, with the continuous improvement of 128 layer nandflash yield on the supply side, the market situation of oversupply in the fourth quarter will be intensified, and the average price drop of nandflash is expected to continue to expand. According to Wu Yating, an analyst at DRAM, it is expected that the ASP of DRAM will decline by nearly 10% in the third quarter, and the decline will expand to 15% in the fourth quarter, and the decline will maintain for at least three quarters. A staff member of an overseas large-scale memory factory told China Securities News that the decline of memory price is inevitable, among which DRAM will decline more than nandflash, but this round of adjustment cycle will not last too long. Zhang Yali, deputy research director of group intelligence consulting mobile business unit, believes that with the price of 5g smart phones sinking to 1000 yuan, driving the demand for replacement, the memory price is expected to stop falling in the first quarter of next year. Source: Yang Qian, editor in charge of China Securities Journal_ NF4425

According to Jibang consulting, even if there is a traditional sales peak season in the third quarter and Apples new machine stock, due to the impact of the epidemic in the first half of the year and the accumulation of terminal sales inventory, the average price drop of nandflash will be as high as 10%. In addition, with the continuous improvement of 128 layer nandflash yield on the supply side, the market situation of oversupply in the fourth quarter will be intensified, and the average price drop of nandflash is expected to continue to expand.

A staff member of an overseas large-scale memory factory told China Securities News that the decline of memory price is inevitable, among which DRAM will decline more than nandflash, but this round of adjustment cycle will not last too long.