This could help to alleviate the gloomy mood ...


https://www.reuters.com/world/asia-pacific/exclusive-tokyo-ready-back-western-digital-kioxia-deal-if-key-tech-stays-japan-2021-09-03/

EXCLUSIVE Tokyo ready to back Western Digital-Kioxia deal if key tech stays in Japan - sources

TOKYO, Sept 3 (Reuters) - Japan's trade ministry is ready to back Western Digital's bid to merge with memory chipmaker Kioxiaprovided control of cutting edge technology stays in Japan, two sources with knowledge of the industry regulator's internal discussions said.

The tie-up could give Japan greater leverage in geopolitical rivalries increasingly dominated by technology, including over shortages of chips. It could also help Japan forge deeper semiconductor industry ties with its U.S. ally, a commitment that President Joe Biden and Prime Minister Suga made in April.

"We will give our support to the indispensable, important semiconductor capacity innovation in Japan," one of the sources told Reuters. Western Digital would need to present a plan that both Japan and the United States "can celebrate," the source added, without giving details.


So, does that mean that if Western Digital put some really disruptive innovation on the balance, the Japanese government will give it full support to the merger ?

I still think that both Western Digital and Kioxia should avoid the merger route because of the three to four years of delays needed to have all big market clearances.

They should rather create a new company and put part of their industrial assets into it.
Kioxia could bring Fab 6 and the futur Fab 7
WDC could bring part of HGST and Sandisk research portfolio, and some other US assets.

They both could keep the basic NAND production to please Apple and and Kioxia could still be listed after the split.

I don't know if this scenario will be the one they choose, but I think they will surprise the market.

Let see...