Western Digital and Kioxia are once again in talks about a potential merger. Plans for this were initially proposed in 2021, but ultimately did not come to completion. 

The deteriorating chip market appears to be the reason for renewed attempts at a merger. The negotiations are reportedly "advanced" at this time.

Currently, Kioxia is 41% owned by Toshiba, although investment firm Bain Capital now holds the majority of shares (56%). The distribution of ownership in the new company is yet to be determined, and an official announcement from the companies is expected within the next few months.  The current plan is for Western Digital to spin off its NAND flash division and merge it with Kioxia. The newly formed company is expected to be publicly traded, with listings in both the United States and Japan. The reason for the failure of the previous merger attempt is unknown, although it is rumored that the relationship between the two companies had become strained after Western Digital attempted to acquire Kioxia earlier in 2021. However, the companies did open a new factory together in Japan at the beginning of last year, indicating that they have a working relationship. Western Digital has had a string of poor quarters, and its stock value has halved over the past year. Both the PC and smartphone markets have continued to deteriorate, which has naturally affected memory manufacturers like Western Digital. If the merger goes through, the companies would have a market share of around 33% in the NAND flash memory market, which is close to that of the current market leader, Samsung. 

Western Digital and Kioxia Might Merge Due to Declining Component Market