Toshiba to cut off Western Dig­i­tal Corp’s fu­ture sup­ply of chips

Muscat Daily - - BUSINESS -

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.

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