COMPANY NEWS IN BRIEF

Intel to sell NAND business to SK Hynix

Intel Corp is preparing to sell its NAND memory chip business to SK Hynix Inc for almost US$10 billion in a deal that would propel the South Korean chipmaker to second in the global rankings, two sources familiar with the matter said.

The deal would allow SK Hynix to overtake Japan's Kioxia as the No.2 player in the NAND memory market, and narrow the gap with market leader Samsung Electronics Co Ltd as the shift to work-from-home boosts demand for chips used in tablets and servers.

Intel would sell its solid-state drive business in the United States and its factory in Dalian, China, which produces advanced flash memory, referred to as 3D NAND, the sources told Reuters on Monday.

The deal would allow Intel to focus on its remaining memory business, Optane, one of the sources said. The person said the deal could be announced as early as Monday in the United States or Tuesday in South Korea, although a final decision had not been made.

Another person said the deal would be an all-cash transaction. Intel did not immediately respond to Reuters' requests for comment, while SK Hynix declined to comment. – Nampa/Reuters

IBM's total revenue fell to US$17.56 billion

International Business Machines Corp edged past Wall Street estimates for quarterly revenue on Monday, bolstered by higher demand for its cloud computing services from companies speeding up their digital shift due to the coronavirus pandemic.

The results come just weeks after Big Blue surprised investors with its announcement of splitting itself into two public companies, placing big bets on cloud computing to drive its future growth.

"We continue to see a very strong pattern in acceleration of our clients' digital transformation. We are seeing that play out in our Red Hat business," chief financial officer James Kavanaugh told Reuters.

Kavanaugh said some clients continued to cut or delay spending due to the pandemic, contributing to a 5% sales decline in its global business services unit.

IBM's total revenue fell 2.6% to US$17.56 billion in the reported quarter, but was slightly above analysts' estimates of US$17.54 billion, according to IBES data from Refinitiv. Excluding the impact from currency and business divestitures, sales declined 3.1%. - Nampa/Reuters

Toyota small loans to boost businesses

The trading arm of the Toyota Group has invested US$4 million in Ugandan start-up Tugende, saying it hopes the firm's loans to small, independent businesses will also help customers buy the carmaker's vehicles.

Launched in 2012 in Uganda, Tugende began by offering motorcycle loans to riders and has since expanded to offer loans for everything from fishing boats and minibus taxis to sewing machines and refrigerators for small shops. It opened a branch in Kenya last November.

The investment in Tugende came from Mobility 54, the investment fund for Toyota Tshusho Corporation as part of US$6.3 million Tugende raised in its Series A investment round this month.

"We see a huge potential for Tugende business in the taxi market," Mobility 54's chief executive officer Takeshi Watanabe told Reuters, noting that many minibus taxis were Toyotas.

Watanabe said the group aimed to invest US$45 million in transportation and asset-financing start-ups like Tugende in Africa next year. – Nampa/Reuters

Tesla to export Model 3 vehicles to Europe

Tesla Inc said on Monday it would start exporting China-made Model 3 cars to more than 10 European countries this month, joining a growing number of automakers using China as an export hub for electric vehicles.

The US carmaker, which started delivering vehicles made in its Shanghai factory in December, will export China-made cars this month to countries including Germany, France, Italy and Switzerland, it said in a statement.

Elsewhere, German rival BMW is preparing to export its electric iX3 model, made at a joint venture plant in Shenyang, China, to Europe, while Daimler is shifting production of its Smart branded city cars to Hangzhou Bay.

Tesla has been expanding in China even as tensions between Washington and Beijing have been escalating. The Shanghai factory, Tesla's first car plant outside of the United States, aims to build 150 000 vehicles this year.

The electric vehicle maker, which sold more than 11 000 Model 3 cars last month in China, the world's biggest auto market, is also building new car manufacturing capacity in Shanghai to make its Model Y sport-utility vehicles. – Nampa/Reuters

Qatar Airways to keep A380s parked for years

Qatar Airways does not expect to use its Airbus A380s for at least the next two years, its chief executive said on Monday, longer than a previous projection for the superjumbos to possibly return to service in 2021.

The state-owned airline has parked its 10 A380s due to the devastating impact of the coronavirus crisis on travel demand.

"We don't think we are going to operate our A380s for at least the next couple of years," Akbar al-Baker told an online conference.

He had said in June the jets would remain parked until at least the middle of next year. The Gulf carrier plans to start retiring its A380s from 2024 when its oldest superjumbo reaches ten years of service.

The A380s would return once the airline saw the growth rate of 2019, before the pandemic struck, Baker said.

The 100 destinations to which the airline is currently flying is 25 fewer than planned due to a new wave of infections in Europe and travel restrictions, he said. - Nampa/Reuters