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Why Western Digital benefits from a deal with Kioxia Holding
Western Digital plans to merge with Japan’s Kioxia Holdings. This information comes from The Wall Street Journal, which claims that the parties are holding preliminary talks. Roughly, the deal could amount to about 20 billion dollars. Western Digital’s shares began to rise steadily amid the message.
The computer hardware manufacturer intends to pay for the deal in its own securities, and the head of the combined company will be the current CEO of Western Digital, David Gekeler. Experts have already assessed the manufacturer’s position after the merger. It is expected to take a share of 30-35% of total flash drive sales in the global market.
In the case of a deal with Kioxia, Western Digital will own the flash memory device manufacturing facilities, including intellectual property, technology and equipment. The companies are already cooperating, they have a joint venture, and the merger will allow Western Digital full control of the production and supply of the Japanese company’s products.
Western Digital was founded in 1970 in California, in 1988 the production of data storage drives began. In addition, on account of the company there are many advanced developments at different times of technological sphere progress. It owns the creation of single-chip microchips, controllers for hard drives, Advanced Format technology and more. The manufacturer also participated in the development of the standard ATA. To date, the main products are hard drives and network drives, which supply various manufacturers of computer equipment.
The Western Digital product line is divided by color. For example, the Blue line includes drives in the low-price category designed for universal use. Black is used for labor-intensive programs or gaming, and Red is designed for 24/7 operation in networked devices. The Green range is positioned as an environmentally friendly, low-power product. They also provide reduced noise and vibration levels compared to the other lines.
Kioxia Holdings was part of Toshiba until 2020, but after the rebranding it changed its name and gained independence. It should be noted that it was a Japanese manufacturer who gave the world the NAND-memory technology and is considered the leader in the production of flash drives.
Kioxia remains the largest supplier of these devices, they are valued above all for their quality and versatility of use. If the merger of companies to implement, it is hoped to expand production of flash memory products. In this case, Western Digital gets all access to Kioxia’s innovations and can complement them with their own developments. Experts already expect that the new merged company will take the lead in the global market.