Feeds

Toshiba swaps flood-soaked Thai plant for WD disk biz

Will that make the European Commission happy?

Application security programs and practises

It's as if we were tipped off: Toshiba is buying the 3.5-inch disk drive operations that WD has to sell to gain EU approval for its Hitachi GST acquisition.

At the same time, Toshiba is transferring to WD its flood-ravaged HDD manufacturing subsidiary in Thailand, Toshiba Storage Device (Thailand).

Western Digital said: "TSDT manufactured hard drives but has not resumed operations after the recent Thailand flooding. The principal assets of TSDT are its Thailand property, facilities and employees... WD plans to integrate these facilities and employees into its Thailand operations."

The financial terms of the two agreements were not disclosed and the hope is that the entire WD-Hitachi GST-Toshiba group of deals will close in March. WD faces a $250m penalty payment to Hitachi GST if the acquisition deal does not close by 7 March.

Toshiba gets:

  • Manufacturing equipment and IP for desktop PC drives, DVRs and other consumer applications
  • Manufacturing equipment for nearline drives for servers.

The entire deal is subject to WD's Hitachi GST acquisition being approved by the relevant antitrust authorities. If consummated it will enable Toshiba:

to supply products covering all segments of the HDD market. It will also expand Toshiba's supply capacity in the market for near-line HDDs, which is expected to expand with the continuing growth of the server market, further reinforcing a strategic segment of the company's HDD business.

Toshiba will consolidate its HDD manufacturing at a plant in the Philippines and a contract manufacturing site in China. It said it aims "to establish itself as the leading provider of integrated storage solutions - the company that has all three key storage solutions: NAND flash, SSD and HDD."

Roughly speaking, the HDD industry will divide into three players in a 40-40-20 split: Seagate will have 40 per cent of the business, as will Western Digital, leaving Toshiba with 20 per cent. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.