Samsung Could Lose Its Flash Memory Dominance and It Could Be Thanks to Toshiba

Samsung at risk to lose flash memory market share

Samsung has an unrivaled market share in the flash memory business, with market sources close to the matter stating that the tech giant holds a 36.6 percent share in this particular industry. However, things might take a very ugly turn for the Korean firm, and while the company’s actions aren’t going to drive that market share down, such ramifications can also take place due to the moves carried out by its competitors.

Toshiba Spinning Off Its Core Memory Business Could Result in Samsung Losing Its Market Dominance in the Flash Memory Sector

Samsung’s market share dominance might finally be thwarted thanks to Toshiba, but not for the reasons you think. Toshiba is currently the second-largest flash memory manufacturer in the world, with a 19.8 percent share and has announced that it is going to be spinning off its core memory business. The company purchasing a 20 percent stake in Toshiba is none other than Western Digital and the latter has a market share of 17.7 percent.

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You might be wondering why the company is spinning off its core memory business despite possessing the second-largest market share in the world. Turns out that Toshiba is forced to make this business decision since its financial position is in shambles as a result of business segments posting losses. In addition, the company’s image has been tarnished due to accounting scandals, leaving it to sell a stake in the NAND flash memory business to raise some much-needed capital.

The manufacturer is expected to complete the sale by March 31, but there is a high chance that the deal does not cross the finish line (via Reuters) due to anti-trust authorities.

Toshiba and Western Digital joining hands would definitely threaten the unrivaled market share of Samsung, although it is too early to tell if the deal is going to go through or not. Other key players that could enter the agreement include SK Hynix, Development Bank of Japan, and some other private equity firms. SK Hynix’s involvement will definitely not be a coincidence since it currently holds the second position of DRAM memory manufacturer, trailing behind Samsung.

A lot of events could develop in the near future and we’ll continue to keep you updated on these events.

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