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Micron Technology Inc. and Western Digital Corp. are each exploring a potential deal for Kioxia Holdings Corp. which could value the Japanese semiconductor company at around $ 30 billion, according to people familiar with the matter, as the global rush for memory chips used in smartphones and other devices heats up.
A deal for Kioxia, controlled by private equity firm Bain Capital, is not guaranteed, and it’s unclear how it might be structured. If a deal were to be made, it could be finalized later this spring, some people said.
The Tokyo-based company had planned an initial public offering before suspending it at the end of September, citing the coronavirus pandemic and market volatility.
An IPO later this year is still possible if the company can’t come to an agreement on a deal with one of the suitors, the people said.
Kioxia is considered a crown jewel in Japan, and given the additional political sensitivities associated with transferring ownership of key technology like chips, any transaction would likely require the government’s blessing. Washington would likely play a role as well, but a deal could come with a push by the United States to boost its chip-making capabilities to increase competitiveness with China.
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