SEOUL — SK hynix Inc., the globe's second-largest memory chip manufacturer, on Monday refuted allegations reported by Japanese media that the South Korean government had exerted pressure on the company concerning the proposed merger between Kioxia Corp. of Japan and Western Digital (WD) Corp. of the United States.
According to Yonhap News Agency, The report suggested that negotiations, which had been on hold due to SK hynix's resistance, were expected to resume in April, with the merger intended to forge an American-Japanese memory chip conglomerate.
The company, clarifying its stance in a press release, stated, "SK hynix would like to make it very clear that this is not true. SK hynix has never faced such pressure or persuasion efforts by the Korean government." This statement aimed to correct the misinformation propagated by the initial report, which led to a series of erroneous follow-up reports. As a significant stakeholder in Kioxia through a tri-national consortium led by Bain Capital, SK hynix plays a crucial role in the approval process of the Kioxia-WD merger. Despite not endorsing the merger, SK hynix has voiced its intention to continue its collaboration with Kioxia, highlighting its strategic approach to international partnerships and industry consolidation.