WSJ Report... Sale Announcement Possibly Today
[Asia Economy New York=Correspondent Baek Jong-min] The leading U.S. semiconductor company Intel is reportedly planning to sell its memory semiconductor division to SK Hynix, according to the Wall Street Journal (WSJ) on the 19th (local time).
WSJ, citing sources, reported that Intel and SK Hynix could announce a deal worth $10 billion within the day. Although WSJ did not specify the exact business area being sold, it is believed to be the NAND flash business. Since the beginning of the year, rumors have been spreading in the semiconductor industry that Intel would discontinue its NAND flash business.
Intel is famous for its central processing units (CPUs) for computers and servers, but its origins lie in memory semiconductors. It sold off its DRAM business to Japan and focused on CPUs, but it has maintained its NAND flash business.
Bob Swan, Intel’s CEO, suggested in April that the NAND business needs to generate more attractive profits and proposed that partnerships could be formed to achieve this.
Intel has recently struggled amid the rapid rise of competitor AMD. In July, it announced a delay in the introduction of its 7-nanometer process technology, causing its stock price to plunge by 18%.
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