Merger talks between Japanese memory chip maker Kioxia and US-based Western Digital are speeding up, reported Reuters, citing sources aware of the development.
Kioxia and Western Digital are reeling under the mounting pressure of weak demand and oversupply.
By merging their businesses, the memory chip makers hope to increase competition in the market, which is dominated by South Korea’s Samsung Electronics.
According to a source, under the new plan being developed, Kioxia would hold a 43% stake in the merged entity and Western Digital would hold 37%.
The remaining portion would be owned by the existing shareholders of the companies, the source added.
A final decision is yet to be made and the specifics of the plan could still change, the source cautioned.
The proposed merger may also be subject to antitrust inquiry in several jurisdictions, including China and the US.