Shulou(Shulou.com)11/24 Report--

Update: SK Hynix subsequently issued a statement: "SK Hynix clarifies that the content of reports related to cooperation with SoftBank is inconsistent with facts. "

CTOnews.com October 18 news, NAND flash memory chip manufacturer Kioxia (Kioxia) and Western Data (WD) merger plan ushered in new variables, reported that South Korean memory giant SK Hynix opposed the merger, and consider cooperation with Japan Softbank investment Kioxia.

According to Yomiuri Shimbun reported on the 18th, Armor and Western Data hope to reach a merger agreement this month, but SK Hynix, which indirectly invests in Armor, does not agree to the merger.

Kaixia, a spin-off of Toshiba's memory business, was sold in 2018 to a consortium led by Bain Capital, of which SK Hynix was a member.

At the time of the acquisition, Bain Capital, the largest shareholder, had to obtain the consent of investors such as SK Hynix to push the merger forward. SK Hynix is reportedly worried that the merger will strengthen Western Digital's dominance.

SoftBank is reportedly strengthening its AI-related businesses. Therefore, by investing and strengthening relationships, SoftBank may obtain a stable supply of memory from Kaixia and SK Hynix.

SK Hynix is the world's second-largest manufacturer in the NAND flash memory market after Samsung, the report said. If the world's third-largest manufacturer, Kaixia, and fourth-largest manufacturer, Western Digital, were combined, they would be almost as big as Samsung. This will create a huge gap with SK Hynix ranked third and cause SK Hynix's concern.

In the second quarter of 2023, Samsung led the NAND memory market with a market share of 31.1%, with Kaixia accounting for 19.6% and Western Data accounting for 14.7%, CTOnews.com quoted Jibang Consulting data. 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.

Related Reading:

"News says Western Digital and Armor will reach a merger agreement as soon as this month"

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