Micron Technology and Western Digital are separately planning a potential deal to acquire Bain Capital’s Kioxia Holdings, a chip and semiconductor company.
The value of the deal may reach about $ 30 billion, according to analysts’ expectations, and such an acquisition is not completely guaranteed and it is not clear how it will be concluded, and if it is actually concluded, it is expected to be closed later in the spring.
Kioxia Holdings last year postponed its plan for what would have been Japan’s largest initial public offering (IPO) of 2020. Previously known as Toshiba Memory, Kioxia, the world’s second-largest memory chip maker, planned last year to list on the Tokyo Stock Exchange on October 6 and issue shares worth 334.3 billion yen.
Micron and Western Digital’s trends come as the global chip industry and semiconductor suppliers are affected by the Covid-19 crisis and trade and technology disputes between Washington and Beijing, with damage including delays in the auto sector and shortages in the production of home appliances and even more expensive smart devices.
Businesses and consumers are experiencing an unprecedented shortage of thin-film semiconductor chips, and Kioxia’s initial public offering (IPO) reportedly remains a potential option if it fails to strike a deal with one of its bidders.