On July 11, news came from the industry that SK Hailishi planned to acquire Intel's Fab 68 storage plant in Dalian, China. SK Hailishi is currently negotiating with Intel to acquire the entire Intel Dalian plant and 3D NAND business. Intel only retains XPoint-related storage technology, according to Jiwei, citing people familiar with the matter.
According to people familiar with the matter, SK Hercules is in a phase of rapid expansion and has recently forced SK Hercules to export raw materials necessary for the manufacture of semiconductor chips to South Korea as a result of Japan's sudden restrictions on the manufacture of related semiconductor chips.
The direct acquisition of storage plants outside Korea, on the one hand, can help SK Hynix to ensure production capacity and ease supply pressure, on the other hand, it may also help SK Hynix to circumvent Japan's export restrictions on raw materials to Korea through overseas factories. Hynix may purchase Japanese Semiconductor Origin through the acquisition of overseas factories. Material, and then part of the transfer to the South Korean Department.
According to the data, Intel's Fab 68 plant planning in Dalian, China started in 2006, when Intel signed a cooperation agreement with Dalian Municipal Government. Then in 2007, Intel formally invested $2.5 billion to build a 12-inch wafer factory in Dalian, mainly responsible for processor packaging and testing. In 2010, the Dalian plant was officially established. Completed.
In 2015, Intel announced that it would invest no more than $5.5 billion to build the second phase of Fab 68 plant in Dalian, which mainly produces non-volatile memory, Nand Flash. After three years of construction, in September 2018, the launch ceremony of the second phase of Intel Fab 68 plant project was held in Dalian. At the same time, Intel announced that the new factory will use the world's most advanced 96-tier stacked 3D NAND flash chip manufacturing technology to achieve mass production, and will become the core production base of Intel NAND flash, contributing about 70% of the production capacity.
Obviously, if SK Hercules succeeds in Intel Dalian Fab 68 plant, it will get enough 3D NAND flash memory chip capacity, will be cost to help SK Hercules solve the current supply pressure, and is expected to switch
According to the latest data from Jibang Consulting, in the first quarter of 2019, the global NAND Flash market achieved business revenue of about 10.792 billion US dollars, of which the market share of SK Hailishi in Korea was 9.5% (down 1.7 percentage points) and that of Intel was 8.5% (up 0.7 percentage points). Obviously, if SK Hynix succeeds in taking over Intel's 3D NAND business, the market share is expected to rise further to nearly 20%.
Is Intel willing to sell Fab 68 and 3D NAND in Dalian?
According to the data, most of Intel's NAND flash chips are used to support the data center business, and only in the past two years has the sales ratio increased. The external sales of 3D NAND belong to the NSG (Non-Volatile Memory Solutions Group) business group. The results show that in fiscal year 2016, 2017 and 2018, Intel's NSG business generated revenue of US$2.58 billion, US$3.51 billion and US$4.3 billion respectively, with an average annual growth of about 20%.
However, due to the heavy investment of 3D NAND and the depreciation period of Dalian plant equipment, NSG business has been losing money since 2016. In 2016 and 2017, NSG lost $540 million and $260 million respectively. In 2018, even after receiving $160 million in government subsidies, it lost $5 million.
In contrast, with the rising price of memory chips in 2017-2018, Samsung, SK Hynix and other storage factories are all making huge profits and making huge profits. Samsung also overtook Intel to become the world's largest semiconductor manufacturer.
In addition, it is worth noting that on the 3D XPoint flash memory, the cooperation between Intel and Meguiar has ended, the joint venture company and the production line have been sold to Meguiar. Although the two sides will independently develop the third generation products based on 3D XPoint technology, the production of Intel's 3D XPoint flash is still handed over to Meguiar. Factory in Utah, USA.
As a result, there is a view that Intel will then focus more on R&D than production in storage business.
Against this background, it is not surprising that SK Hynix is negotiating with Intel to acquire Intel Fab 68 plant and 3D NAND business.
So, the question is, what is the value of Intel Fab 68 and 3D NAND?
According to the data, Intel first invested 6 million US dollars in 2004 and 2007, and 2.5 billion US dollars in building sealing and storage plants in Chengdu and Dalian. In 2015 and 2016, Intel increased its capital by 5.5 billion US dollars and 1.6 billion US dollars respectively to expand its factories in Dalian and Chengdu. According to the results, Intel's total fixed assets in China reached $6.417 billion in 2018.
According to the analysis of a certain industry source to the WeChat,
So does SK Hynix have enough cash to buy?
According to the data, Hailishi's cash balance at the end of 2018 was still as high as $7 billion, which provided cash support for Hailishi's acquisition.
SK Hynix has not responded to this rumor.
However, just as recently, Intel's relevant head-in-person told the response core that:
Obviously, judging from Intel's response, the rumor this time is just a
Editor: Shin Zhixun - Lin Zi