Sk Hercules plans to change the pattern of Intel flash memory chip with 60billion connecting disk

category:Finance
 Sk Hercules plans to change the pattern of Intel flash memory chip with 60billion connecting disk


NAND flash memory and DRAM, as important memory chips, are widely used in mobile phones, computers and other terminal equipment, and are indispensable high-cost core devices. In this field, Samsung ranks first, followed by SK Hynix. After the acquisition, SK Hynix can be said to be more powerful, and the pattern of NAND flash memory market will also be changed.

Sk Hynix expands, Intel Slims

First of all, from Intels point of view, in the external statement, CEO of Intel, Mr. Ruibo, stressed that for Intel, this transaction can enable Intel to focus more on investment in differentiated technologies and generate considerable returns for investors. Intel plans to use the funds from the deal to strengthen its business priorities with long-term growth potential, including artificial intelligence (AI), 5g network and intelligent, and edge devices related to autonomous driving.

Sk Hynix has been actively expanding its territory in recent years. Both NAND flash memory and DRAM continue to invest in new factories, including the new factory in Lichuan, South Korea, and the expansion of Wuxi factory in China. In the highly competitive semiconductor market, SK Hynix also wants to further improve its profitability. Next, Intels Dalian factory will supplement SK Hynixs NAND flash memory capacity.

Sk Hynix said that it will combine Intels storage solution related technology and production capacity to create a series of 3dnand solutions with high added value, including enterprise SSD.

This acquisition will undoubtedly change the pattern of flash market. The semiconductor research office of trendforce Group Consulting pointed out to the reporter of 21st century economic report that the merger is expected to give the two companies a comprehensive effect in the field of enterprise SSD and start the integration of nandflash industry.

According to Jibang consulting data, SK Hynix and Intel accounted for 11.7% and 11.5% of the revenue market in the second quarter of this year, ranking fourth and sixth respectively. If SK Hynix completes the acquisition of Intel flash memory business, SK Hynix will gain 23.2% market share, surpassing Jiaxia (formerly Toshiba storage), and become the second largest flash memory market after Samsung. As a result, in the flash memory market, Korean manufacturers will occupy half of the country.

According to the consultation, if the product competitiveness is further distinguished, in 2019, SK Hercules strengths in nandflash are mobile phone field, including EMCP and EMMC products, accounting for more than 60% of SK Hercules total nandflash revenue. Intel has been outstanding in enterprise SSD for a long time, not only keeps pace with Samsung, but also accounts for more than 50% of China. In terms of all end applications of nandflash, enterprise SSD is the best product for profit.

In terms of production capacity, SK Hynixs current nandflash production capacity is all located in South Korea; Intels nandflash production capacity is all located in Dalian, China. Intel is the company that promotes QLC architecture most among all nandflash manufacturers, and is expected to account for more than 30% of its output by the end of this year. After SK Hynix has obtained Intels 3dnandflash capacity, its competitiveness in the field of enterprise SSD will greatly increase. What needs to be focused on is how to balance the different product architectures of Intel and SK Hynix to achieve the maximum comprehensive effect. It should be noted that the acquisition is limited to 3dnandflash related technologies and capacity, excluding the emerging memory technology 3D xpoint.

Source: Yang Bin, editor in charge of economic report in the 21st century_ NF4368