SK hynix in talks to acquire Intel’s Dalian memory plant: reports

SK hynix, the world’s No.2 memory chipmaker, is looking to acquire Intel’s memory chip production facility in China’s Dalian, according to Chinese media reports.

On July 11, Chinese semiconductor media Ji Wei Wang (集微网) said that SK Hynix is in talks with Intel for acquiring the Intel Fab 68, a 3D Nand flash production plant.

“Should this deal happen, Intel would be selling off all of its NAND related assets, with the exception of 3D cross point technology,” said the media outlet. In January, Intel sold off its entire stake in IM Flash, a flash memory joint venture it created with Micron.

SK Hynix denied the rumors. "We haven't heard anything about such talks," a spokesman told The Elec.  

Intel sells a small portion of flash memory chips, but has insignificant market presence. At the same time, its Non-Volatile Memory Solutions Group that produces 3D Nand flash memory is straddled with debt.

In 2016, the group incurred 634 billion won ($54.7 million) of deficit, and $260 million of deficit in 2017. Last year, it posted a $5 million deficit despite receiving $160 million of government subsidies.

Unloading the Dalian plant could further help Intel get back on track financially, as it’s worth a hefty sum, according to market watchers. Last year, Intel’s fixed assets in China stood at $6.41 billion last year, and they were mostly focused in the Dalian plant, excluding equipment that has been written off for depreciation.

The Elec is South Korea’s No.1 tech news platform.