Sk Hynix plans to connect 60 billion Intel flash memory chips

 Sk Hynix plans to connect 60 billion Intel flash memory chips

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

For Intel, the non core business of flash business contribution is not high. Although it includes flash memory business, NSG (non-volatile memory solutions group) had revenue of $1.7 billion in the second quarter, up 76% year-on-year. As of June 27, 2020, Intels NAND business has generated about US $2.8 billion in revenue and about US $600 million in operating profit in NSG. However, in previous years, NAND business suffered losses for several years, and only improved in 2019. In addition to the cyclical fluctuations in the storage industry, the non core NAND business is regarded as a burden of Intel, and the sale is also in line with the current business strategy.

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.

Memory chip pattern or change

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.

Furthermore, Samsung and SK Hynix continue to dominate in the overall memory market. In terms of DRAM market share, the top two brands of DRAM in the second quarter were Samsung (44.1%) and SK Hynix (29.3%), which accounted for more than 70% of the market. As a result, SK Hynix ranks second in the world in terms of NAND flash memory and DRAM.

According to Jibang consulting, if the product competitiveness is further differentiated, SK Hynixs strengths in nandflash are mobile phone field, including EMCP and EMMC products, accounting for more than 60% of SK Hynixs total nandflash revenue. Intel has been doing well in the field of enterprise SSD for a long time. It not only keeps pace with Samsung, but also accounts for more than 50% of the market in China. In terms of all terminal applications of nandflash, enterprise SSD is the most profitable product.

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