Kioxia-Western Digital merger rumors may shake global chip market

Kioxia-Western Digital merger rumors may shake global chip market [Sources : Kioxia, Western Digital]

Japanese chipmaker Kioxia Holdings Corp. and U.S. Western Digital Corp. are rumored to be discussing a merger, suggesting a realignment in the global semiconductor market that is suffering from sluggish demand.

According to industry sources and foreign media reports on Tuesday, Kioxia, the second largest in the global NAND flash market, and Western Digital, the fourth largest, are discussing a merger. Discussions have not yet progressed in details.

Kioxia and Western Digital have an extensive partnership in NAND technology development and production facility operation.

There are five companies competing in the global NAND market while the DRAM market is more consolidated.

According to market tracker Trendforce, South Korea’s Samsung Electronics Co. ranked first in the NAND flash market in the third quarter of last year with a 31.4 percent share. It is followed by Kioxia with 20.6 percent, SK hynix Inc. with 18.5 percent, Western Digital with 12.6 percent, and Micron Technology Inc. with 12.3 percent.

Market watchers noted that the potential merger between Kioxia and Western Digital could threaten Samsung’s market leadership in the category.