There is quite a bit of competition in the NAND memory market. While Samsung continues its leadership, Micron, SK hynix, Kioxia and Western Digital also have significant shares. The last two of the above-mentioned companies actively participated in the negotiations, the direct result of which could be a merger. While nothing has been finalized yet, the new company could challenge Samsung if the transaction takes place.

Samsung’s current share of the flash memory market is estimated to be around 30%. For Kioxia and Western Digital, it is approximately 20% and 15%, respectively. Therefore, it is easy to calculate that a potential merger could result in the emergence of a new leader. According to the news of Reuters, negotiations on the merger of companies have intensified recently. Both companies are taking advantage of the unfavorable situation in the industry as they are affected by the decline in demand and large memory stocks.

We reported the start of negotiations in January, but they have made significant progress recently. Kioxia will hold a 43% stake in the combined company. Western Digital could count on 37%. The rest will remain in the hands of the current owners. The Reuters portal states that decisions have not yet been made and that the stock structure may be slightly different. There are also fears that the merger may face resistance from antitrust authorities in some countries.

It is also possible to separate the department responsible for NAND flash memory from Western Digital and merge it with Kioxia. In this case, the hard drives will still be produced by a separate company. Talks between the companies were already underway in 2021, but were later suspended due to differences in share valuation.