Toshiba to cut off Western Digital Corp’s future supply of chips
San Francisco, US - Toshiba Corp took another stab at its US joint venture partner, Western Digital Corp, saying it has no rights to new chip production that’s vital to the future of both companies.
The latest escalation of the fight between the two centres on a new factory called Fab 6. Toshiba said it will build the plant without any participation from its US partner, thereby cutting off Western Digital from chips made with the factory’s new technology. Western Digital inherited its stake in the joint venture when it bought SanDisk Corp.
‘Toshiba is dismayed by Western Digital’s pattern of exaggerating SanDisk’s rights under the relevant agreements’, the Tokyo-based company said on Friday. ‘Despite claims to the contrary, Western Digital does not now possess any legal rights to participate in this phase of investment, which is an important investment in the next generation of flash memory’.
‘The terms of the agreements and our related legal rights are clear, and we remain confident that we will receive our share of any capacity from Fab 6’, the San Jose, California-based Western Digital said.