SK Hynix established ASCA Hynix Semiconductor in Dalian, China, on May 13 in a move to facilitate its acquisition of Intel’s NAND plant.
SK Hynix wholly owns the new corporation, which has 100 million won in capital and will engage in integrated circuit (IC) manufacturing, sales and design.
SK Hynix forecasts that its takeover of the NAND business from Intel will go smoothly as the deal has already been approved by the United States and Europe. Some analysts believe that China will be the last hurdle to clear for the acquisition deal as it is at loggerheads with the United States over semiconductor hegemony. Six countries are left to review the deal including China, Britain, Brazil, and Korea.
SK Hynix signed a memorandum of understanding (MOU) with the government of Dalian in January this year, three months after its deal with Intel, to win the local government’s cooperation in acquiring Intel’s NAND plant in Dalian.
Industry watchers believe that the agreement is about the expansion of the Intel plant. However, SK Hynix is keeping mum on the cooperation program it will launch in connection with its MOU with the Dalian government. Intel’s Dalian fab has been in operation since 2010. It produced system semiconductors at first but switched to NAND production in 2016.