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Toshiba and Western Digital to end chip dispute
Toshiba alongside Toshiba Memory Corporation (TMC) and Western Digital have entered into an agreement to resolve their disputes in regards to their ongoing flash memory collaboration.
As part of the agreement, TMC and Western Digital will both participate in future rounds of investment in Fab 6, the memory fabrication facility now under construction at Yokkaichi, (this including the upcoming investment round announced by Toshiba in October 2017). 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 also intend to enter into definitive agreements in due course 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 December 31, 2029 and Flash Forward to December 31, 2027. Flash Partners was previously extended to December 31, 2029. The companies have also agreed to resolve all of the disputes related to the sale of TMC, ensuring that all parties are aligned on Toshiba’s sale of TMC to K.K. Pangea (a consortium led by Bain Capital Private Equity, LP). “We are very pleased to have reached this outcome, which clearly benefits all involved. With the concerns about litigation and arbitration removed, we look forward to renewing our collaboration with Western Digital, and accelerating TMC’s growth to meet growing global demand for flash memory. Toshiba also remains on track to complete our transaction with the consortium led by Bain Capital by the end of March 2018. This will ensure that TMC has the resources it needs to continue to innovate and deliver for a fast-growing flash memory market, particularly in areas driven forward by advances in AI and IoT,” said Dr. Yasuo Naruke, Senior Executive Vice President of Toshiba Corporation and President and CEO of TMC. As part of the settlement agreement, Toshiba, TMC and Western Digital have agreed to withdraw all pending litigation and arbitration actions.
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