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SANTA CLARA, CA - Intel Corp (NASDAQ:INTC), a $102 billion semiconductor giant currently trading near its Fair Value according to InvestingPro analysis, has finalized the sale of its NAND memory technology and manufacturing business to SK hynix Inc. (KS:000660), a South Korean semiconductor company, as of Thursday. The deal, which was initially announced on October 19, 2020, concluded its second and final phase with Intel receiving approximately $1.9 billion, net of certain adjustments.
This transaction follows the first closing that took place on December 29, 2021, when SK hynix acquired Intel’s NAND memory fabrication facility in Dalian, China, along with related equipment and tangible assets, and Intel’s NAND solid-state drive business. The recent completion signifies the transfer of Intel’s remaining NAND memory technology and manufacturing business to SK hynix.
As part of the finalization, the NAND wafer manufacturing and sale agreement that had been in place since the first closing has been terminated. Under this agreement, Intel was producing NAND wafers at SK hynix’s Dalian memory manufacturing facility.
The acquisition is part of SK hynix’s strategy to bolster its NAND flash memory capabilities and market presence. For Intel, the sale marks a strategic shift, allowing the company to focus on its core businesses and emerging technologies. This move comes as Intel faces profitability challenges, with negative free cash flow and a loss of $4.38 per share over the last twelve months.
The details of the transaction were disclosed in an 8-K filing with the Securities and Exchange Commission. The filing provides transparency on the completion of this significant asset disposition by Intel, a leading company in the semiconductors and related devices industry. With annual revenue of $53.1 billion, Intel maintains a significant market presence despite current challenges. Discover more detailed financial metrics and exclusive insights with InvestingPro, including additional ProTips and comprehensive analysis.
Intel, headquartered in Santa Clara, California, is incorporated in Delaware and has been a longstanding innovator in the semiconductor industry. The company’s shares are traded on the Nasdaq Global Select Market under the ticker symbol INTC. InvestingPro’s analysis shows Intel maintaining a FAIR overall financial health score, with analysts predicting a return to profitability this year.
The information in this article is based on a press release statement.
In other recent news, Intel has introduced its Xe Super Sampling 2 technologies, which aim to enhance gaming performance by improving framerate and maintaining high visual quality. The technologies, including Xe Super Sampling Super Resolution and Xe Super Sampling Frame Generation, utilize AI deep learning to upscale images and generate detailed frames. Additionally, Intel has rolled out its new AI Edge Systems and Open Edge Platform to accelerate AI adoption across industries, addressing the unique challenges of edge AI. These offerings are designed to improve performance and reduce costs in sectors like retail and manufacturing.
Intel also welcomed Lip-Bu Tan as its new CEO, marking the beginning of a new leadership era. Tan expressed enthusiasm for his role and aims to collaborate with employees to drive the company forward. Meanwhile, Nvidia (NASDAQ:NVDA)’s CEO, Jensen Huang, clarified that Nvidia is not involved in any potential Intel stake purchase, dispelling recent speculation. Furthermore, Intel’s Board of Directors will see significant changes as three members, including former chairman Omar Ishrak, announced their retirement. These developments reflect ongoing transformations within the company as it navigates the evolving tech landscape.
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