Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

China's Unisplendour drops bid to buy WD stake

Lucas Mearian | Feb. 25, 2016
In turn, Western Digital gone with an alternate plan for its SanDisk purchase

The Exon-Florio Amendment allows the U.S. president to suspend or prohibit foreign acquisitions, mergers or takeovers of U.S. companies if there is credible evidence that a foreign controlling interest might threaten national security.

The Chinese government regards NAND flash to be a critical part of its plan to localize semiconductor production, according to TrendForce's Yang. "At the same time, the domestic consumption of this memory is rising rapidly," he said.

According to DRAMeXchange, China purchased $6.5 billion worth of NAND flash in 2015, or about 28% of the global total.

In 2016, China is expected to consume about one-third of the worldwide share of NAND flash.

In light of that growth, Chinese semiconductor companies will try to establish a complete NAND flash supply chain through various business models or investment ventures, Yang said.

"Tsinghua Unigroup attempted to indirectly obtain NAND flash manufacturing capability by first becoming WD's largest shareholder and then having WD to take over SanDisk," Yang said. "Tsinghua Unigroup will now have to adjust its strategy, and the market will pay close attention to what the Chinese conglomerate will do next in its pursuit of NAND flash technology."

 

Previous Page  1  2 

Sign up for CIO Asia eNewsletters.