In the second quarter, Kioxia, a chip company formerly known as Toshiba Memory, reported an operating loss of 100.8 billion yen due to a decline in demand for memory chips used in smartphones and PCs. This loss was significantly lower than the 130.8 billion yen loss reported in the previous quarter. The COVID-19 pandemic has resulted in a decrease in demand for memory chips, leading to an oversupply in the market and putting pressure on the industry to consolidate. Merger talks between Kioxia and Western Digital have stalled after SK Hynix, a Kioxia investor, expressed opposition to the deal.
Despite the challenging market conditions, Kioxia is hopeful for a rebound in demand for NAND flash memory used in data storage. The company noted that selling prices have reached a low point, but expect higher shipments of smartphones and PCs in the coming year. Additionally, Kioxia’s revenue fell quarter-on-quarter, but a smaller loss was reported due to higher average selling prices and a boost from the weaker yen. Meanwhile, Toshiba, which holds a stake in Kioxia, posted a 26.7 billion yen net loss in the second quarter. The industrial conglomerate is expected to go private following a successful $13.4 billion tender offer from private equity firm Japan Industrial Partners. Despite the challenging market conditions, Kioxia remains optimistic about the outlook for its business.
Kioxia, previously known as Toshiba Memory, reported an operating loss of 100.8 billion yen in the second quarter as demand for memory chips used in smartphones and PCs declined due to the impact of the COVID-19 pandemic. Merger talks between Kioxia and Western Digital have stalled, and SK Hynix has expressed opposition to the potential deal. Despite the challenging market conditions, Kioxia is optimistic about a rebound in demand for NAND flash memory and expects higher shipments of smartphones and PCs in the coming year. Meanwhile, Toshiba, which holds a stake in Kioxia, posted a 26.7 billion yen net loss in the second quarter and is expected to go private after a successful tender offer from Japan Industrial Partners.
