New variables: SK Hynix opposes the merger of Western Digital and Kioxia

According to news from this site on October 18, the merger plan of NAND flash memory chip manufacturer Kioxia and Western Digital (WD) ushered in new variables. It was reported that South Korean memory giant SK Hynix opposed the merger. , and is considering cooperating with Japan’s SoftBank to invest in Kioxia.

According to the Yomiuri Shimbun report on the 18th, Kioxia and Western Digital hope to reach a merger agreement this month, but indirectly SK Hynix, which invested in Kioxia, does not agree with this merger

Kioxia is a spin-off of Toshiba’s memory business and was sold to a consortium led by Bain Capital in 2018, of which SK Hynix is ​​a member one of the members.

According to the provisions of the acquisition agreement, Bain Capital, as the largest shareholder, must obtain the consent of SK Hynix and other investors before promoting the merger. According to reports, SK Hynix expressed concerns about the merger, fearing that it would enhance Western Digital’s dominant position

According to reports, SoftBank is currently strengthening its artificial intelligence-related business. Therefore, through investments and strengthened relationships, SoftBank may be able to secure a stable supply of memory from Kioxia and SK Hynix. According to the report, SK Hynix ranks as the second largest manufacturer in the world in the NAND flash memory market. Second to Samsung. However, if Kioxia, the world's third-largest manufacturer, and Western Digital, the fourth-largest manufacturer, merged, they would be almost as large as Samsung. This situation will lead to a huge gap between SK hynix and the third-ranked manufacturer, causing concern for SK hynix

According to TrendForce data, in the second quarter of 2023, Samsung ranked 31.1% The market share leads the NAND memory market, with Kioxia occupying 19.6% and Western Digital occupying 14.7%. After the merger of Kioxia and WD, the combined market share of the two companies will exceed 34.3%, becoming the dominant force in the NAND memory market

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