Intel: Continue to invest in storage business [electronics manufacturing expo News]

15 Jul 2019

Recently, it has been reported that Hynix plans to acquire Intel's Fab 68 plant in Dalian, China, including the entire Intel Dalian plant and 3D NAND business, while Intel only retains electronics manufacturing expo XPoint-related technologies. For this news, Intel has given an official response.

Intel: "As part of normal business operations, Intel regularly communicates with other storage vendors. Given the current industry landscape, it is natural to see such rumors. It's not surprising that memory and storage are still data-centric. At the heart of the strategy, we will continue to invest in these businesses."

Although Intel did not explicitly indicate that the electronics manufacturing expo news was not credible, it is not difficult to see from the response that it denied the Hynix acquisition rumors.

In Intel's business, 3D NAND services are far less well-known than data centers and PCs. Due to the excessive investment in 3D NAND and the depreciation period of Dalian plant equipment, the NSG business group under the external electronics manufacturing expo sales of 3D NAND has continued to lose money since 2016, with losses of USD 540 million and USD 260 million in 2016 and 2017 respectively. In 2018, even if it received a $160 million government grant, it still lost $5 million.

Since the 3D NAND business has been losing money for a long time, some insiders believe that Hynix is ​​the best candidate. Due to Japan’s crisis of supply to South Korea, which has dealt a heavy blow to the Korean semiconductor industry, Hynix, which is in the stage of rapid expansion, is in urgent need of finding a electronics manufacturing expo life-saving plan. The acquisition of Intel Dalian Factory is one of the plans. An industry insider also pointed out that "on the one hand, Intel's Dalian plant has basically fully released production capacity, which can help Hynix ensure production capacity and maintain the market; on the other hand, Hynix may also use Intel's supply chain to ease the supply pressure."

At present, Intel has given an official response, and Hynix has not responded to this.

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