South Korean chipmaker SK hynix is acquiring Intel's memory-chip unit for about 9 billion U.S. dollars.
SK hynix said on Tuesday that through the acquisition, it aims to gain a competitive edge in the NAND memory chip market.
The Intel unit makes NAND flash-memory products primarily used in devices such as hard drives, thumb drives and cameras.
Intel has been looking to get out of the business, due largely to sagging prices for flash memory chips.
The final takeover is expected to be completed by 2025.