• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Exclusive-Tokyo ready to back Western Digital-Kioxia deal if key tech stays in Japan – sources

September 3, 2021 by David Barret Leave a Comment

September 3, 2021

By Tim Kelly and Ritsuko Shimizu

TOKYO (Reuters) – Japan’s trade ministry is ready to back Western Digital’s bid to merge with memory chipmaker Kioxia provided control of cutting edge technology stays in Japan, two sources with knowledge of the industry regulator’s internal discussions said.

The tie-up could give Japan greater leverage in geopolitical rivalries increasingly dominated by technology, including over shortages of chips. It could also help Japan forge deeper semiconductor industry ties with its U.S. ally, a commitment that President Joe Biden and Prime Minister Suga made in April.

“We will give our support to the indispensable, important semiconductor capacity innovation in Japan,” one of the sources told Reuters. Western Digital would need to present a plan that both Japan and the United States “can celebrate,” the source added, without giving details.

A Western Digital spokesperson in Japan wasn’t able to immediately comment.

The U.S. firm needs Japanese government acquiescence for any merger with Kioxia in order to forge a company able to rival South Korea’s Samsung Electronics in the NAND flash memory market.

Trade and industry minister Hiroshi Kajiyama has not yet publicly said whether he would back the San Jose, California-based company.

Long seen as hostile to foreign acquisitions, the Ministry of Economy Trade and Industry (METI) is shifting its position, the other source privy to internal discussions said.

“Our strategy on semiconductors means it no longer has to be 100% Japanese. The stance is no longer to reject everything, but to apply conditions instead,” the source said. “Kioxia by itself has its limits.”

IPO PLANS

A separate source last month told Reuters a merger agreement may be possible by this month, with Western Digital CEO David Goeckeler seen likely to manage the combined firm.

But for now, Kioxia says it is sticking to a plan to sell itself in an initial public offering (IPO).

“We have said we are preparing to hold the IPO at an appropriate time, and our stance hasn’t changed,” a Kioxia executive told Reuters this week. The company, he added, was in talks with METI officials, which included discussions about support for semiconductor makers.

Kioxia, which relies on Apple Inc for around a quarter of its sales, is planning to hold an IPO in November the Nikkan Kogyo newspaper reported on Friday, citing unidentified sources..

It cancelled an IPO last year over concerns that Washington-Beijing tensions would squeeze sales to Chinese customers.

Toshiba Corp sold Kioxia in 2018 to a consortium led by Bain Capital for $18 billion. The Japanese industrial conglomerate still owns about 40.6% of the chip company.

Whichever course the chipmaker and its owners choose, it will face stiff competition to capture more of a burgeoning market that is being driven by pandemic purchases of electronic devices from people spending more time at home, and by longer-term demand from the advent of 5G connectivity, artificial intelligence and an explosion in data storage.

Kioxia and Western Digital already jointly produce NAND chips, which don’t need power to retain data and are commonly used in devices such as smartphones, TVs and data servers.

A combined Kioxia-Western Digital would control 34% of the NAND flash market, putting it on a par with Samsung Electronics. South Korea’s SK Hynix Inc and U.S. firms Micron Technology Inc and Intel Corp are the other large players.

SK Hynix is waiting on regulatory approval to acquire Intel’s NAND chip business for $9 billion, a hurdle that any Kioxia-Western Digital deal would face not only in Japan and the United States, but from China’s State Administration for Market Regulation too. The Chinese antitrust regulator has scuppered semiconductor deals in the past, including Qualcomm Inc’s $44 billion bid for NXP Semiconductors in 2018.

“Chinese companies need memory chips from Western Digital and Kioxia. I don’t think that the Chinese government will say definitely no,” the first source said.

Both sources asked not to be identified because they are not authorised to talk to the media.

(Reporting by Tim Kelly, Ritsuko Shimizu, Yuki Nitta, Shinji Kitamura and Makiko Yamazaki; Editing by Mark Potter)

Source Link Exclusive-Tokyo ready to back Western Digital-Kioxia deal if key tech stays in Japan – sources

David Barret
David Barret

Related posts:

  1. Islamic State ‘Beatle’ to plead guilty to U.S. terrorism charges
  2. Asian shares hold gains, dollar weak ahead of major U.S. jobs data
  3. Vietnam’s biggest city proposes Sept 15 economic restart after lockdown
  4. Singapore Exchange’s SPAC rules seen giving market much-needed boost

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • The Bizarre 1997 Experiment That Made A Frog Levitate
  • There’s A Very Good Reason Why October 1582 On Your Phone Is Missing 10 Days
  • Skynet-1A: Military Spacecraft Launched 56 Years Ago Has Been Moved By Persons Unknown
  • There’s A Simple Solution To Helping Avoid Erectile Dysfunction (But You’re Not Going To Like It)
  • Interstellar Object 3I/ATLAS May Be 10 Billion Years Old, This Rare Spider Is Half-Female, Half-Male Split Down The Middle, And Much More This Week
  • Why Do Trains Not Have Seatbelts? It’s Probably Not What You Think
  • World’s Driest Hot Desert Just Burst Into A Rare And Fleeting Desert Bloom
  • Theoretical Dark Matter Infernos Could Melt The Earth’s Core, Turning It Liquid
  • North America’s Largest Mammal Once Numbered 60 Million – Then Humans Nearly Drove It To Extinction
  • North America’s Largest Ever Land Animal Was A 21-Meter-Long Titan
  • A Two-Headed Fossil, 50/50 Spider, And World-First Butt Drag
  • Interstellar Comet 3I/ATLAS Is Losing Buckets Of Water Every Second – And It’s Got Cyanide
  • “A Historic Shift”: Renewables Generated More Power Than Coal Globally For First Time
  • The World’s Oldest Known Snake In Captivity Became A Mom At 62 – No Dad Required
  • Biggest Ocean Current On Earth Is Set To Shift, Spelling Huge Changes For Ecosystems
  • Why Are The Continents All Bunched Up On One Side Of The Planet?
  • Why Can’t We Reach Absolute Zero?
  • “We Were Onto Something”: Highest Resolution Radio Arc Shows The Lowest Mass Dark Object Yet
  • How Headsets Made For Cyclists Are Giving Hearing And Hope To Kids With Glue Ear
  • It Was Thought Only One Mammal On Earth Had Iridescent Fur – Turns Out There’s More
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version