Micron Technology Inc. and Western Digital Corp. are each checking out a prospective deal for Kioxia Holdings Corp. that might value the Japanese semiconductor company at around $30 billion, according to individuals acquainted with the matter, as an international scramble for memory chips used in smartphones and other gadgets warms up.
An offer for Kioxia, controlled by private-equity company Bain Capital, isnt ensured, and it isnt clear how one might be structured. Needs to an offer come together, it could be completed later on this spring, some of individuals stated.
The Tokyo-based business had been preparing an initial public offering prior to shelving it in late September, mentioning the coronavirus pandemic and market volatility.
An IPO later this year is still a possibility should the business fail to reach arrangement on a deal with among the suitors, individuals said.
Kioxia is considered a crown-jewel possession in Japan, and– provided the extra political level of sensitivities of moving ownership of key technology like that in chips– any transaction would need the blessing of the federal government there. Washington would likewise likely contribute, but a deal could fit with a push by the U.S. to enhance its chipmaking capabilities to increase competitiveness with China.