Micron technology Inc. and Western Digital Corp are exploring a potential deal for Kioxia Holdings Corp., according to the Wall Street Journal. The deal could value the Japanese semiconductor company at around $30 billion.
Kioxia is highly regarded in Japan and given the political sensitivities of transferring key technology like chips, any transaction would need to be approved by the government.
Washington is also likely to play a role, but a deal could fit with a push by the U.S to boost its chipmaking capabilities to increase competitiveness with China.
Kioxia had been planning an initial public offering, expecting a valuation of about $16 billion before shelving it in late September, citing the coronavirus pandemic and market volatility.
A deal for Kioxia isn’t guaranteed and it is not clear how it will be structured
Micron and Western Digital stocks are currently gaining. MU: NASDAQ is up 4.52% on premarket, WDC: NASDAQ is up 3.30% on premarket.
