Feeds

Toshiba swaps flood-soaked Thai plant for WD disk biz

Will that make the European Commission happy?

Secure remote control for conventional and virtual desktops

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
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Free virtual appliance for wire data analytics
The ExtraHop Discovery Edition is a free virtual appliance will help you to discover the performance of your applications across the network, web, VDI, database, and storage tiers.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
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?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.