WSJ News Exclusive | Micron, Western Digital Looking at Possible Deals for Chip Maker Kioxia

Micron Technology Inc . and Western Digital Corp . are every exploring a possible deal for Kioxia Holdings Corp. that would worth the Japanese semiconductor firm at round $30 billion, in response to individuals accustomed to the matter, as a world scramble for reminiscence chips utilized in smartphones and different gadgets heats up.

A deal for Kioxia, managed by private-equity agency Bain Capital, isn’t assured, and it isn’t clear how one may be structured. Should a deal come collectively, it could possibly be finalized later this spring, a number of the individuals stated.

The Tokyo-based firm had been planning an initial public offering earlier than shelving it in late September, citing the coronavirus pandemic and market volatility.

An IPO later this yr continues to be a chance ought to the corporate fail to achieve settlement on a cope with one of many suitors, the individuals stated.

Kioxia is taken into account a crown-jewel asset in Japan, and—given the extra political sensitivities of transferring possession of key know-how like that in chips—any transaction would require the blessing of the federal government there. Washington would additionally possible play a task, however a deal might match with a push by the U.S. to spice up its chipmaking capabilities to extend competitiveness with China.

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