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
- 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