Toshiba has entered into an agreement with Western Digital Corporation to acquire certain Western Digital’s 3.5-inch HDD manufacturing equipment and related intellectual property and to transfer Toshiba Storage Device (TSDT), Toshiba’s wholly-owned HDD manufacturing subsidiary located in Thailand to Western Digital.
The agreement will enable Toshiba to acquire certain manufacturing equipment for 3.5-inch HDDs for use in desktop PCs and other consumer applications, plus related intellectual property; and manufacturing equipment for near-line HDDs for server applications from WD.
Toshiba said it also has agreed to transfer to Western Digital its entire shareholding in TSDT.
The acquisition of part of Western Digital’s 3.5-inch HDD manufacturing equipment and with it the capability to produce 3.5-inch HDDs for desktop PCs, DVR and other consumer applications will enable Toshiba to supply products covering all segments of the HDD market.
Western Digital’s 3.5-inch HDD manufacturing equipment acquisition also expands Toshiba’s supply capacity in the market for near-line HDDs.
Toshiba will transfer the shares of TSDT to Western Digital and consolidate HDD production at its two HDD manufacturing facilities in the Philippines and a contract manufacturer in China.
