Merger talks between Western Digital (WD), a major U.S. data storage product manufacturer, and Kioxia Holdings (formerly Toshiba Memory Holdings), a major semiconductor memory company,
🟩 Merger of Kioxia and WD
Merger talks are underway between Kioxia, which holds the second largest NAND memory share, and Western Digital, which holds the third largest share. An agreement is expected as early as mid-September. Kioxia’s enterprise value could be more than $20 billion, and if realized, it would reorganize the NAND memory industry.
🟩The birth of the No. 1 Samsung-class NAND company
Kioxia and Western Digital jointly develop and produce NAND memory. If the company becomes one company through the merger, the combined market share of the two companies will be the same size as that of No. 1 Samsung Electronics. One of the world’s largest NAND memory companies will be born.
With SK Hynix’s acquisition of Intel’s NAND business, the NAND memory industry will be consolidated into four camps: the U.S. and South Korea.
🟩 Kioxia’s Corporate Values
Kioxia is Toshiba Memory that was sold to cover Toshiba’s deficit in 2017. At the time, Western Digital was also making a name for itself as a buyer for Toshiba Memory. However, there were concerns about the acquisition of a foreign company, and in the end it was sold to a fund of the “Japan-U.S.-ROK Business Alliance” for about 2.3 trillion yen. In addition, the shareholding ratio of the fund was 50.1% for Toshiba and HOYA, both Japan companies, maintaining the appearance of a Japan company.
According to media reports, Kioxia’s enterprise value is estimated to be about 2.2 trillion yen. It hasn’t changed since Toshiba Memory was sold in 2017. This means that we have not been able to increase our corporate value after four years of management.
Merger of Kioxia and Western Digital Consolidates NAND Industry into Four Camps
Just like with Toshiba Memory, there will be voices of concern that Kioxia will become a U.S. company.