Kioxia Holdings Corp, the world's second-largest maker of NAND flash memory chips behind Samsung Electronics, will postpone plans for an initial public offering, or IPO, as tensions between U.S. and China have been rising, Nikkei learned on Sunday.

Multiple sources familiar with the matter, however, told Nikkei that the company would not give up its IPO and will try rescheduling it once again around the end of this year or the beginning of 2021.

Kioxia, Toshiba's former memory business, was set to debut Oct. 6 on the Tokyo Stock Exchange. It was expected to list at a valuation of 2.13 trillion yen ($20 billion), which would make it Japan's largest IPO this year.

Toshiba currently has a roughly 40% stake, with the rest held by a consortium of U.S., Japanese and South Korean investors.

The memory chip market is bracing for an impact from tighter U.S. restrictions on Huawei Technologies that came into force this month.

Toshiba sold its memory business in 2018 to the consortium led by U.S. buyout firm Bain Capital for roughly 2 trillion yen. The deal was in response to the massive losses at U.S. nuclear power subsidiary Westinghouse Electric.