[Alpha Biz=(Chicago) Reporter Kim Jisun] Japan's KIOXIA, a producer of memory semiconductor NAND flash, and Western Digital (WD) in the U.S. are pushing for management integration, while SK Hynix (000660) is opposed to it, a Japanese report said. SK Hynix, an investor in KIOXIA, is currently the third largest NAND market.

Japanese media reported on the 18th that South Korea's SK Hynix, which indirectly invested in KIOXIA, is reluctant to negotiate the integration of Western Digital management with Kioxya.

Talk of the merger of KIOXIA and Western Digital began to be discussed in 2021 and has been mentioned for years. However, as the NAND market has been sluggish recently, negotiations have reportedly resumed, and some observers say the merger is imminent.

It is heard that SK Hynix, which indirectly invested in KIOXIA, needs to agree to the merger of the two companies, but has not yet delivered its consent. Currently, Western Digital is finally coordinating to integrate management by separating semiconductor memory business and establishing KIOXIA Holdings and holding company. KIOXIA has decided to receive 2 trillion yen worth of loans from Japanese financial institutions this week for the merger, but if it fails to win consent from SK Hynix, it could also affect negotiations with financial institutions.

Samsung Electronics is the No. 1 NAND market, but if KIOXIA, the No. 2 player, and Western Digital, the No. 4 player, merge, they could have an edge over Samsung in terms of market share.

 

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