Hardware

Japanese authorities are not opposed to Kioxia’s deal with Western Digital, but want to maintain control over technology

The current Japanese authorities, according to informed sources, are not ready to adhere to the principle of technological and economic autonomy. They could even approve Western Digital’s deal to buy Kioxia if Japanese control of key technologies remains. Alternatively, Kioxia is considering an IPO in November.

Image source: Reuters

Image source: Reuters

The Ministry of Economy, Trade and Development of Japan is currently taking a softer position in attracting foreign investment in the semiconductor industry. A conglomerate of Japanese companies now controls more than 40% of Kioxia’s shares, and the sale in 2018 of the assets of Toshiba Memory, which formed the basis of the first of the companies, was accompanied by rather painful processes.

The current government of Japan, as noted Reuters citing informed sources, they see Kioxia’s deal with Western Digital as an opportunity not only to gain competitive advantages in the international market, but also to win the favor of American allies. The Kioxia precedent could attract other investors to Japan to take part in the resurgence of the local semiconductor industry. The only thing that the Japanese authorities insist on is the preservation of the geographic origin of valuable technologies.

Officials from Kioxia did not comment on such rumors, but instead said that the company is preparing to go public. According to Japanese media reports, it will take place in November this year, although September was previously mentioned in this context. After the merger, Kioxia and WDC will jointly control 34% of the solid-state memory market, which will allow them to compete with the leader in the person of the South Korean giant Samsung Electronics.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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