US Micron and Western Digital Aim to Acquire Kioxia

[Asia Economy Reporter Seulgina Jo] There are reports that American semiconductor companies Micron and Western Digital are considering acquiring shares of the Japanese semiconductor company Kioxia.

The Wall Street Journal (WSJ) reported this on the 31st of last month (local time), citing sources. The source said, "If the deal goes through, it could be finalized this spring, but the outcome is still uncertain," adding, "If the deal falls through, Kioxia may pursue an initial public offering (IPO) again later this year."

Kioxia is a company that produces NAND flash memory semiconductors used in smartphones and computer servers. As of the third quarter of last year, it holds a 19.5% share of the NAND market, ranking second worldwide. It was created by selling Toshiba's flash memory division, with SK Hynix investing about 4 trillion won. Currently, Kioxia is valued at $30 billion (approximately 33.99 trillion won). Toshiba currently holds about a 40% stake.

Industry insiders interpret Micron and Western Digital's consideration of acquiring Kioxia as an attempt to achieve economies of scale through mergers and acquisitions in the NAND market. Samsung Electronics holds the top position in the NAND market with about a 30% share, while the other top 10 companies each hold around 10%. If third-ranked Western Digital (14.4%) and fifth-ranked Micron (11.2%) acquire Kioxia, they would reach a scale capable of competing with Samsung Electronics.

Micron is the world's largest memory chip manufacturer and the third-largest global DRAM supplier. Western Digital primarily produces NAND flash and hard disk drives. It is not yet known whether Micron and WDC are individually bidding for Kioxia or jointly negotiating the acquisition.

This content was produced with the assistance of AI translation services.