According to Japan's Kyodo News Agency, Japanese chip manufacturer Kioxia and Western Digital are about to finalize a merger agreement to create the world's largest memory chip manufacturer. The merger plan includes the establishment of a holding company to integrate the two parties' businesses producing NAND flash memory chips.
The combined entity is expected to be listed on the Nasdaq stock exchange in the United States. With the global semiconductor market facing competitive pressure and demand fluctuations, the merger is seen as a strategic move to improve the combined market position of the two companies.
Western Digital shareholders are expected to own a majority stake in the new entity, while Kioxia shareholders, including Toshiba Corp., will hold the remainder. The move will bring the newly formed company's total share of the NAND memory chip market to 35.4% as of March this year, surpassing South Korea's current leader Samsung Corp.'s 34.3%.
However, given the growing impact of semiconductors on global economic security, final approval of the merger depends on decisions by regulators, including China. Major Japanese banks, including MUFG Bank and the state-backed Development Bank of Japan, are considering providing loans of up to about 1.9 trillion yen (about $12.7 billion) to facilitate the merger.
access:
Jingdong Mall