Western Digital and Japan's Kioxia Holdings have called off merger talks after failing to agree on terms of a deal that would have created one of the world's largest makers of memory chips, a person familiar with the matter said on Friday.
South Korea's SK Hynix — a major Kioxia investor and rival to both the U.S. and Japanese companies — has said it does not back the deal due to its impact on its investment asset value.
The Nikkei business daily, which first reported the news, also said the companies were unable to agree on conditions with top Kioxia shareholder Bain Capital.