The merger plan between NAND flash memory chip manufacturer Kioxia and Western Data (WD) is currently facing new variables. SK Hynix stated on Thursday that it does not agree to the merger between Japan's Kioxia and Western Data in the United States, and there is more uncertainty in transactions between Japanese and American storage chip companies.

SK Hynix is the world's second largest memory chip manufacturer and also a shareholder of Armor Company. The company stated at its latest Q3 financial report meeting that the transaction underestimated the value of its holdings. SK Hynix stated in a statement that considering the impact of this merger on the value of the company's investment assets, the company has not yet agreed to this project.

It is reported that Western Digital was established in 1970 and is a US company specializing in the research and production of computer mechanical hard drives, solid-state drives, and storage chips. Its subsidiaries include brands such as Sandisk.

Kioxia, a storage chip company spun off from Toshiba's memory business in Japan, was sold to a consortium led by Bain Capital in 2018, and SK Hynix is a member of the consortium. At the time of acquisition, it was stipulated that the largest shareholder, Bain Capital, must obtain the consent of investors such as SK Hynix to promote the merger.

At present, the main players in the field of storage chips include Samsung, Micron, Western Data, Hynix, Armor, and others. According to TrendForce consulting data, Samsung holds over one-third of the NAND flash memory chip market, with Armor's share approaching 19% and Western Data's share at 15%.

Western Data and Armor have been discussing possible merger plans for many years, and the two companies are currently seeking to end negotiations this month and hope to announce the deal before Western Data releases its financial results on October 30th. Armor had previously approached Japan Investment Corp. in the hope of injecting capital to accelerate the transaction process, but SK Hynix has publicly expressed opposition to the merger, so the overall plan is now facing new changes.

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