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Toshiba Memory

Toshiba Memory sees 'good chance' of M&A in push for data center business, how’s the fact? You will get some analysis behind this action, and the attitude of Toshiba’s top leaders to carry out the M&A. After reading the post, you are able to find the answer to the question whether M&A is a good chance to promote data center business.

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Toshiba Memory

Toshiba Memory sees 'good chance' of M&A in push for data center business is heatedly talked aout recently. It’s no wonder a big move after a long time of operating loss (from January to March) because of slow smartphones sales and chip oversupply.

As we all know, Tohsiba Memory is the second-largest Nand flash memory chips manufacturer in the world after Samsung Electronics. As for hard drives, Tohsiba Memory has released many kinds of HDDs and SSDs for satisfying users’ various demands. For example, NVMe SSD Portfolio for cloud data centers, the L200 Laptop PC Hard Drive and Toshiba M.2 SSD for games, entertainment, business, etc.  

You may have an interest in this post: How Do I Perform Toshiba Hard Drive Recovery Easily and Quickly.

Whether M&A Is A Good Chance to Promote Data Center Business

Besides hard drive, cloud service providers, data center players are also obtaining Tohsiba Memory’s attention. Toshiba Memory Chairman Stacy Smith has told Reuters this intention and emphasized that the company is hoping to increase their share on the market.

The loss caused by smartphones and other consumer gadgets has influenced the company’s further development. So, it must do something to offset the negative impact on the firm and gain many benefits.

In addition, the words from the former Intel Corp financial chief Smith “There is a good chance that Toshiba Memory will embark on M&A over time” illustrate this point further.

Toshiba Memory is rebranding as Kioxia in October by report, while this new name combines kioku (memory meaning in Japanese) with axia (meaning value in Greek). This name may display the company’s ambition from one hand. Hence, the action to M&A in push for data center business can make sense now. 

It is said that the U.S. buyout firm Bain Capital who bought Toshiba Memory at the cost of $18 billion was looking forward to listing the business possibly as the biggest flotations in Japan this year, but the action may be postponed to November. 

Additionally, the IPO might be delayed to 2020 according to the market conditions. Smith claimed that: “We’re going to be ready when the market conditions are right, not to comment the timing is proper or not instead.” Toshiba Memory Sees 'Good Chance' of M&A to promote data center business? Probably, it is not as good as Toshiba Memory thinks.

This view is proved in its memory example. Analysts expect the price in Nand flash market will be supported by the recent production outbreak of Toshiba Memory. Tough the business has recovered, the shipments need several weeks to restore.

Out of expectation, Smith said: “The good news is we had a reasonable amount of inventories that we are able to use kind of buffer the impact on our customers.”

M&A may be a good chance for Toshiba Memory to promote data center business, but it still has some challenges and problems. The most important thing is going to be ready just as Smith said before.

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