The global semiconductor shortage may be setting up a RAM manufacturer merger

The Wall Street Journal report Micron and Western Digital are each exploring a potential deal for Kioxia Holdings Corp

  • could value the Japanese semiconductor company at around $30 billion
  • Kioxia is controlled by private-equity firm Bain Capital
  • any deal is not guaranteed, and it isn’t clear how one might be structured

And add:

  • Kioxia is considered a crown-jewel asset in Japan, and-given the additional political sensitivities of transferring ownership of key technology like that in chips-any transaction would likely require the blessing of the government there. 
  • Washington would also likely play a role, but a deal could fit with a push by the U.S. to boost its chipmaking capabilities to increase competitiveness with China.

Note, the WSJ may be gated


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