Toshiba, WD end all ligitation, start new flash memory cooperation

Nieuws Algemeen Wereld 13 DEC 2017
Toshiba, WD end all ligitation, start new flash memory cooperation
Toshiba confirmed it reached a global settlement with Western Digital that ends all pending litigation and arbitration actions. Under the deal, the two will also strengthen and extend their relation, and namely their flash memory cooperation. TMC and Western Digital will together participate in future rounds of investment in Fab 6, the state-of-the-art memory fabrication facility now under construction at Yokkaichi, including the upcoming investment round announced by Toshiba earlier this year. Fab 6 will be entirely devoted to the mass production of BiCS FLASH, the next-generation of 3D flash memory, starting next year. TMC and Western Digital have also committed to signing new deals in the future, under which Western Digital will participate in the new flash wafer fabrication facility which will be constructed in Iwate, Japan. 

The parties will strengthen their flash memory collaboration by extending the terms of their joint ventures. Flash Alliance will be extended to 31 December 2029 and Flash Forward to 31 December 2027. Flash Partners was previously extended to 31 December 2029. 

The agreement means all parties are aligned on Toshiba’s sale of TMC to KK Pangea, a special purpose acquisition company formed and controlled by a consortium led by Bain Capital. Around this sale, Toshiba and Western Digital have agreed on mutual protections for their assets, on keeping information around the sale confidential and on collaborating to ensure the future success of TMC as a public company following an eventual IPO. 

Toshiba VP and TMC CEO Yasuo Naruke said that with the agreement in place, the company looks forward to renewing its collaboration with Western Digital, and accelerating TMC’s growth to meet growing global demand for flash memory. Toshiba also remains on track to complete its transaction with the consortium led by Bain Capital by the end of March 2018. He added that the deal will give TMC the resources to innovate in the flash memory market, particularly in areas driven forward by advances in AI and IoT.


Categories:

Algemeen

Companies:

Toshiba,  Western Digital

Regions:

Wereld

Tags:

Production planning & operations, Semiconductors, Cooperations & alliances, Wholesale, Memory Cards, Legislation - Lawsuits, M&A buyouts & divestments

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