Kioxia and Western Digital have been exploring the possibility of a merger for more than two years, and now they are reportedly in detailed talks to make it happen. According to insiders, Kioxia will be the majority owner in the joint venture. The two companies have already been running two plants together in Japan, so their combined operations won't be entirely new territory for them.

Possible rewritten title: Kioxia and Western Digital Merger May Drive Down SSD Prices

If the merger goes through, it will create a giant company that can compete with Samsung in the data storage space. This new entity will have a diversified product portfolio encompassing SSD, microSD, NAS, and other storage solutions. The consolidation will most likely result in better performance and lower costs, which will be a significant benefit for end-users who will be able to purchase affordable storage solutions with a higher capacity.

Western Digital is known for its strength in the consumer market, with popular brands like Sandisk. In contrast, Kioxia excels in the enterprise and automotive segments. This complementary mix will enable the newly merged company's to have a more balanced portfolio and thrive in all aspects of the storage industry.

The acquisition may also spur more R&D activities, as Senior Vice President of Technology & Strategy at Western Digital, Alper Ilkbahar, hinted in a recent statement. He noted that working with a common R&D roadmap and continued investment in R&D could help the companies productize fundamental technology ahead of schedule and deliver high-performance, capital-efficient solutions.

While the potential merger has been the subject of much speculation over the past two years, industry observers have pointed out that it won't be an easy journey. The NAND market is currently experiencing a drop in global NAND revenue, with Western Digital being one of the worst impacted brands. However, if the merger is successful, two of the biggest storage companies in the world will become a giant capable of competing with Samsung.