Toshiba announced today that it has signed an agreement with Western Digital to exchange some of the assets of the two company's hard drive business: Western Digital exchanged 2.5 inches of Toshiba's Thailand in exchange for the cost of some manufacturing equipment and related patents for 3.5-inch desktop PC hard disk/server Nearline HDD. Hard disk factory and 100% equity of Toshiba Storage subsidiary in Thailand.
The transaction will be formally completed after the approval of the government of the relevant country in March. For Western Digital, the acquisition of a Toshiba plant reduced the cost of rebuilding a damaged factory in flooding in Thailand. For Toshiba, obtaining some of the Western Digital's hard disk manufacturing equipment and related patents means that the company will return to the 3.5-inch desktop hard drive market, and it will also be able to strengthen its supply capability for the rapidly growing server storage market. The renunciation of Thailand’s comprehensive shift of hard drive production to factories in China and the Philippines could also further reduce costs.
The transaction will be formally completed after the approval of the government of the relevant country in March. For Western Digital, the acquisition of a Toshiba plant reduced the cost of rebuilding a damaged factory in flooding in Thailand. For Toshiba, obtaining some of the Western Digital's hard disk manufacturing equipment and related patents means that the company will return to the 3.5-inch desktop hard drive market, and it will also be able to strengthen its supply capability for the rapidly growing server storage market. The renunciation of Thailand’s comprehensive shift of hard drive production to factories in China and the Philippines could also further reduce costs.
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