Toshiba still working on chip sale, sues WD

Toshiba announced that it has not yet reached a final deal with its preferred bidder for its memory chip business. A week ago it named named a consortium of the Innovation Network Corp of Japan, Bain Capital and the Development Bank of Japan as the preferred bidder and said it aimed to reach a final agreement by 27 June. Toshiba said negotiations are still underway, complicated in part by the multiple parties involved. It aims to reach an agreement as soon as possible. 

Separately, Toshiba said it is suing Western Digital for complicating its sale of the semiconductor business. In the case brought at Tokyo district court, the company is seeking a an injunction against acts of unfair competition and damages of JPY 120 billion from WD for previous violations of the Unfair Competition Prevention Act, among other things.

Toshiba said WD had interfered with its attempts to sell the memory chip business TMC, making statements publicly and to potential bidders that a deal could be scuppered by the joint ventures between Toshiba and the WD unit Sandisk. Toshiba said WD had exaggerated its rights from the joint venture and proceeding with the sale of the memory unit does not violate any rights held by WD.

Toshiba also accused WD of improperly obtaining Toshiba and TMC’s trade secrets by transferring to WD employees of SanDisk who have access to confidential information of Toshiba and TMC. Toshiba also stopped all information sharing with WD. 

Despite the difficult relations, Toshiba said it's asked Sandisk whether it plans to continue to invest in their joint 'Fab 6' in Yokkaichi, Japan. Toshiba announced an investment of JPY 180 billion this year to complete phase 1 and 2 construction of the site. Scheduled for completion by the end of 2018, the site is devoted entirely to its BiCS flash memory. Toshiba said that if Sandisk does not invest, it will cover the investment itself.