Western Digital insists on the right of primary purchase is manufactured by Toshiba semiconductor

According to sources, Western Digital is looking for convincing arguments to get control of semiconductor manufacturing to Toshiba.

Allegedly, Western Digital is negotiating with the state-backed Fund INCJ and development Bank of Japan regarding the special conditions for participation in the auction. It is known that INCJ and the Bank intend to make a joint bid, hoping to acquire 30% of the company. In addition, the representative of the Western Digital confirmed that the issue is being discussed with other potential buyers, including Apple.

Western Digital has become the manufacturing partner of Toshiba with the purchase last year for a 15.8 billion dollar company SanDisk. Now this investment is under threat as Toshiba, which produces flash memory, together with SanDisk, plans to sell its production. Among those to whom it could be named not only INCJ, but competitors Western Digital, including SK Hynix and Broadcom. The company Western Digital believe that are entitled to priority purchase.

Toshiba plans to complete the sale by March 2018. As for the position of Western Digital stating that the intention of the Toshiba violates the terms of the joint venture agreement, Toshiba are going to respond in writing, but «have left other options if the problem cannot be solved».

Source: Bloomberg

Western Digital


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