Micron Technology and Western Digital are each exploring a possible bid for Japanese chipmaker Kioxia, the Wall Street Journal reports. The company, controlled by Bain Capital, could be worth around USD 30 billion, people familiar with the matter said. Should a deal come together, it could be finalized later this spring, the report said.
The Tokyo-based company had been planning an initial public offering before shelving it in late September, citing the coronavirus pandemic and market volatility. An IPO later this year is still a possibility should the company fail to reach agreement on a takeover, the sources said.
Previously known as Toshiba Memory, Kioxia makes NAND flash-memory chips used in smartphones, computer servers and other devices. Its value has increased significantly from an estimated USD 16 billion at the time of the IPO, driven by the demand for connectivity during the pandemic and pressure on global chipmaking capacity. Its business had been hit by US export restrictions on Huawei that threatened to lead to excess supply and price drops for flash-memory products.
Kioxia was purchased in 2018 by a group led by Bain that included Apple, Dell, Kingston Technology and Seagate in a deal worth around USD 18 billion. Toshiba retained a 40 percent stake in the business.
Micron is already a big player in DRAM and would expand its NAND capabilities with a takeover of Kioxia. Western Digital, active in hard discs and NAND chips, has a joint venture with Kioxia for manufacturing and research and development.
