Toshiba and Western Digital reach agreement

Although Toshiba has finalized the sale of its chip business to a consortium led by Bain Capital, the disputes after the sale are no less than those before the sale. Although Toshiba, which is short of money, urgently needs to complete the acquisition as soon as possible, Western Digital is unwilling to give up and sued Toshiba in arbitration. Fortunately, there are reports that Western Digital and Toshiba will reach a settlement next week.

According to people familiar with the matter, Toshiba's board of directors has approved the framework of the settlement agreement and hopes to reach a final agreement with Western Digital next week. The core of the settlement agreement between the two parties is that Western Digital will give up its arbitration application, and Toshiba needs to provide Western Digital with a new advanced chip production line for production next year.

Toshiba said that although Toshiba is open to reconciliation, the specific content of the settlement and the details of the board meeting between Toshiba and Western Digital will not be disclosed. In order to make up for the losses of Westinghouse Electric, Toshiba is eager to sell its most profitable chip business to Bain Capital. If this transaction cannot be completed as soon as possible, Toshiba, a century-old company, may face the tragedy of delisting.

However, even if Western Digital no longer blocks Toshiba from selling its chip business, Toshiba still faces global antitrust pressure because Bain Capital's consortium includes South Korea's SK Hynix, which already has a large market share in the storage field. If it gets Toshiba's business, it may be something that other peers don't want to see.

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