SK hynix places Intel's top manager on NAND in charge of new US flash entity

SK hynix Inc. finalizing $9 billion acquisition of Intel Corp’s flash NAND and SSD business has placed its manager Robert Crooke in charge of a new U.S. corporation to ensure unwavering operation under the new Korean ownership.

Robert Crooke, general manager for NAND products of Intel, revealed the news on a Linkedin post on Wednesday, saying “I am excited to share that we are currently in business development and once all the jurisdictions approve the deal, we will stand up a new global company, headquartered in the U.S. and owned by SK hynix.”

“I am honored to be the CEO of this company. Stay tuned for our new company name, I’ll share it here,” he added.

SK hynix signed an agreement to acquire Intel’s NAND and SSD business for $9 billion in October last year. The acquisition will become final upon the approval from China within the year after it was cleared from seven necessary markets Korea, the U.S., European Union, the U.K. and Singapore.

The new independent company is expected to be located in California and oversee business across the world including China, Taiwan, Poland and the U.K. About 150 new employees will be hired.

Once antitrust issues are removed, SK hynix delivers first $7 billion to have the right for the workforce and solutions related to SSD production. The remaining $2 billion will be paid in March 2025 and then Intel’s Dalian factory will be handed over to SK hynix, which is the final process of the acquisition. The Korean chipmaker recently established ASCA Hynix Semiconductor in Dalian, China, to back the transition.

SK hynix is rushing to diversify its business portfolio that primarily hinges on DRAM. Its own NAND flash business is expected to turn out a profit in the third quarter.

With the addition of Intel’s business, SK hynix leapfrogs to world’s No. 2 in the NAND flash business from current No. 5.

SK hynix shares closed Friday 1.67 percent lower at 118,000 won ($103.24).

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