SK Hynix is already the world number two maker of DRAM chips, used in computers and servers, and the second-largest chipmaker overall. — Reuters pic
But it has lagged in the market for flash memory — or NAND — chips, which are used in everyday devices such as smartphones and USB storage drives, as well as industrial and medical equipment. Their combination will see SK Hynix leapfrog Japan’s Kioxia and Western Digital of the United States into second place with a market share of more than 23 per cent, the Trendforce numbers showed.
The Intel acquisition would strengthen the NAND operations of SK Hynix, which have “not been as strong as its other businesses”, said Ahn Ki-hyun, vice-president of the Korea Semiconductor Industry Association. In 2012, a multi-billion-dollar merger saw it become part of the SK Group, the third-largest of the chaebols, headed by Chey Tae-won, who is currently married to the daughter of late South Korean president Roh Tae-woo.