[Software] Micron Technology

[WilkerCSBD]

According to the Wall Street Journal, industry sources indicated that both Micron Technology and Western Digital would be exploring possible transactions with Kioxia Holdings Corp. that could bring the valuation of the Japanese semiconductor company to a sales figure of $ 30 billion but Is KIOXIA for sale then? What will happen to the last redoubt of Japanese storage in case they sell it?

Kioxia's predecessor was Toshiba Memory, one of the best established companies in the field of Flash memory that has R&D institutions in Japan, the United States, the United Kingdom, Israel and India and produces NAND Flash memory chips for phones. smart phones, computer servers and many other devices. Currently, Kioxia is the world's second largest Flash memory chip maker with a 20% market share, and it is also the only remaining manufacturer in Japan. If the acquisition goes through, this will mean that the Japanese warehousing has come to an end.

From glory to loneliness: the Japanese memory market
In essence, the development of DRAM memory in Japan began at the same time as that of the United States, around 1972. At that time, Japan pioneered the successful development of 1 KB DRAM that was introduced to the market at the same time as the DRAM from Intel, and they pioneered the invention of NAND Flash memory around 1987.

Info KIOXIA

In 1976, led by Japan's Ministry of International Trade and Industry with Hitachi, Mitsubishi, Fujitsu, Toshiba and NEC as the backbone, Japan invested some 72 billion yen in joint research for integrated circuit manufacturing technology. In 1980, the joint research and development body VLSI of Japan announced the completion of a four-year project, the main research results of which include various types of electron beam exposure devices, plate-making devices using ultraviolet rays. and dry etching devices.

The technical integration of several companies ensured that the DRAM mass production rate of return was above 80%, far exceeding the 50% that the United States had at the time and constituting an overwhelming cost advantage, establishing the dominant position of Japan at that time.

Following this, the Japanese industry successfully developed 1MB DRAM, and Mitsubishi soon released 4MB DRAM technology. Hitachi began using a 1.5-micron process to produce DRAM, and in 1988 Toshiba's monthly production capacity surpassed one million units. In the same year, the market share of Japanese companies reached almost 80%, and for a long time NEC, Toshiba and Hitachi were the three dominant companies on the world stage.

EDRAM-cover

At the time, the US DRAM market share was less than 20%, and tech startups like Intel and AMD were ousted from the throne by leading Japanese companies. The US government realized that it could lose its strategic command position in the computer industry, so they changed their trade policy towards Japan from support to containment, something similar to what they are doing now with China. .

In 1986, a 100% penalty was imposed on the $ 300 million in chips that Japan exported to the U.S. In September of that year, Japan and the United States signed an agreement containing a clause guaranteeing that Japan would open its market to USA and that in five years it would allow the country to have a market share of 20% within Japan.

After that, the Korean storage industry took advantage of the situation, causing the Japanese semiconductor industry to suffer a sharp decline in the 1990s. By 2001, its share of the world market had lost half of the total. South Korea and Taiwan adopted a technology development model that far exceeded Japanese technology, putting very aggressive pressure on Japan.

Faced with this situation, the main semiconductor companies in the world took countermeasures and initiated important strategic adjustments, reducing costs, transferring their production lines abroad and outsourcing businesses. All of this led to a decline in the Japanese industry that, in the end, left Toshiba alone as a major player in the storage business since Elpida went bankrupt in 2012.

If Kioxia sells, it will be the end of Japanese storage
It was not long ago that Toshiba Memory became KIOXIA with the aim of promoting a better brand image, and as we pointed out before they are currently the second largest producer of flash memory in the world with a 20% share. The interest of Micron Technology and Western Digital, although not confirmed, would make a lot of sense for both companies.