KIOXIA RULES OUT SK HYNIX MERGER, PLEDGES PRICE RESTRAINT

Kioxia Holdings Corp. rejected speculation about closer business ties with SK Hynix, its major stakeholder, as the Japanese chipmaker navigates competitive pressures in the memory sector. The company's top executive signaled determination to control surging chip prices, a critical factor as artificial intelligence demand drives hardware procurement across data centers and cloud providers. Unchecked price escalation risks pricing customers out of AI infrastructure investments, potentially constraining long-term demand growth. Kioxia faces pressure from both supply constraints and elevated production costs, which have pushed memory prices higher. The company's pledge to manage pricing reflects broader industry dynamics where sustained demand depends on accessible component costs. The statement also clarifies Kioxia's strategic independence despite SK Hynix's significant ownership stake. Both companies compete in NAND flash and DRAM markets, making deeper consolidation complicated by regulatory and competitive concerns.