Feeds

Toshiba swaps flood-soaked Thai plant for WD disk biz

Will that make the European Commission happy?

Internet Security Threat Report 2014

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.