Toshiba to invest in chip line without JV partner Western Digital

Sliding value: Toshiba Corp's market value is currently 973 billion yen (RM38.2bil), less than half its value in mid-December. Just under a decade ago, the firm was worth almost 5 trillion yen (RM196bil).

TOKYO: Toshiba Corp said on Thursday it would go ahead with the capital investment to build a new memory chip production line without joint-venture partner Western Digital Corp as the two failed to reach an agreement about the investment.

The Japanese company said it has increased the amount of capital investment in the Fab 6 production line to 195 billion yen (US$1.76 billion), up by 15 billion yen from its original estimate, because it is now going it alone.

The two are at loggerheads over a planned sale of Toshiba’s chip unit, which is crucial for the firm to plug a multi-billion dollar balance sheet hole left by the collapse of its US nuclear business. Western Digital says any deal would require its consent.

A Toshiba spokesman said even though the initial investment will be made unilaterally, the firm is open to talks with Western Digital about subsequent investment plans. Western Digital was not immediately available for comment.

The new line, set to start operating around next summer, will produce memory chips using next-generation three-dimensional technology as Toshiba aims to raise the 3D proportion to about 90% in the year ending in March 2019.

Separately, Toshiba was ordered to allow Western Digital to access databases at their memory chip joint venture, in a blow to the Japanese firm’s effort to push the US partner into accepting the sale.

The California Court of Appeal on Wednesday lifted the stay of a temporary restraining order saying Toshiba must allow Western Digital’s employees to access shared databases and chip samples at their joint venture in western Japan.

Toshiba first shut out Western Digital in late June as tensions around the sale escalated. It temporarily suspended the lockout in July following a restraining order by the Superior Court of California, but reimplemented it a week later as its petition for an appeal was accepted. - Reuters

Article type: metered
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

High Court imposes 24 months imprisonment term on former Transmile CEO Premium
Tanco aims to secure contracts worth RM200mil in 2022 Premium
FMM: Critical to develop foreign worker recruitment policy and system Premium
Sasbadi slips into the red Premium
Pintaras secures RM34.3mil contract Premium
Censof appoints Vicks Kanagasingam as CEO of Censof Digital Premium
KLCI sinks 12.95 points amid regional sea of red Premium
Asian shares extend losses on Ukraine fears and Fed jitters Premium
In surprise move, Singapore tightens monetary policy on inflation risks Premium
Touch 'N Go to launch new version of card with NFC capability Premium

Others Also Read