Memory makers Western Digital and Kioxia want to merge. The two have been working together on a joint venture for decades. WD would like to pay for the merger with $20 billion worth of shares, converted about 17 billion euros.
WD is Fulgens Wall Street Journal In advanced discussions with Kioxia. This is Toshiba’s previous memory. Sources familiar with the matter say the talks have been going on for a long time and have intensified in recent weeks. A deal may close by mid-September. If the merger takes place, the combined company will be led by WD CEO David Goeckeler.
According to the business newspaper, it is not yet certain that the merger will actually take place. Kioxia will also consider other options, such as an IPO or acquisition by another company. According to the WSJ, Micron was also interested in Kioxia, but is said to have cooled off. The acquisition of Kioxia requires the approval of the Japanese government.
American Western Digital and Japan’s Kioxia have been working together on memory chips for decades. In 2017, the joint venture between the two companies Extended to 2029. The merger will enable the group to compete more effectively with Samsung. It is the largest nand memory manufacturer in the world.
according to TrendForce Numbers Samsung accounts for 34 percent of the NAND memory market. Kioxia ranks second with 18.3 percent, followed by WD with 14.7 percent. If the two companies merge, they will be on par with Samsung. Consolidation has been in the memory manufacturing market for quite some time. Intel was sold last year nand memory division to SK Hynix for $9 billion.
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