Western Digital Takes Steps to Block Sale of Toshiba’s Chip Division

Western Digital has gone to an arbitrator to prevent Toshiba from selling its chip division. According to the company, the sale violates the terms of the joint venture between WD’s SanDisk subsidiary and Toshiba.

The arbitration case is set to take place in California and aims to reverse the creation of Toshiba Memory. According to WD, Toshiba has transferred its nand manufacturing operations to Toshiba Memory, without seeking approval from SanDisk.

SanDisk has entered into three memory joint ventures with Toshiba in the past. Western Digital’s subsidiary should have been involved in the plans to establish Toshiba Memory under the terms, Western Digital said. According to the American group, talks with Toshiba have failed and it has therefore been decided to take legal action.

In the background, Western Digital sees itself as the best party to take over Toshiba’s memory activities. Toshiba would see it differently. The Japanese concern needs money after a series of financial setbacks.