SK Hynix, world’s second-largest chipmaker South Korean company on last Tuesday announced a $9 billion that’s roughly around Rs. 66,000 crores. 

This deal is proposed to buy Intel’s flash memory chip undertaking at $9 billion. SK Hynix seeks to strengthen its status against its biggest rival and well-known chipmaker behemoth Samsung Electronics.

Presently, SK Hynix is already holding the second position in the world as a DRAM chips makes. These chips are widely used in growing computer technologies and servers. Moreover, it’s now cleared that SK Hynix is the second-largest chipmaker overall in the entire globe. 

However, it has languished in the market for the extensively used flash memory,  or NAND chips. This memory and chips are widely used in everyday devices such as USB storage drives and smartphones. As an increased used of these technologies, it’s how majorly used in industrial and medical equipment.

SK Hynix View

SK Hynix in a regulatory filing said that currently, it will acquire Intel’s “entire NAND business division, however, eliminating the Optane division” for KRW 10.3 trillion. The deal is prepared to cover Intel’s factory in Dalian, China. 

Currently, SK Hynix holding the fourth rank by global NAND sales reported mid of this year. And reports by market researchers Trendforce says Intel was at sixth position. 

SK Hynix leapfrog Japan’s Kioxia along with the Western Digital the growing chip makers company from the United States holds the second place together. There’s market share is roughly more than 23℅ the Trendforce digits indicated.

It’s getting out from a various source that SK Hynix switches away from the Japanese input material with new Korean Product. 

The current market shares report says that the highly demanding NAND and DRAM markets are both dominated by Samsung Electronics. Moreover, the global chip need has increased profits for the two South Korean businesses in the last few years to a great height. 

It doesn’t stop there and the two firms strive to supply chips to American well-grown companies like Apple, Dell and HP.  

That’s all about the deal and its major factors of occurrence. There’s many in the way, just Stay Tuned!

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