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Toshiba Chip Unit Sale In Doubt

Toshiba Chip Unit Sale In Doubt

Western Digital has told Toshiba it won’t agree to a sale of the Japanese conglomerate’s memory chip unit to a preferred bidding consortium that includes rival chipmaker SK Hynix, a South Korean outfit.

Western Digital jointly runs Toshiba’s main semiconductor plant and has opposed the sale that could amount to as much as US$18 billion.

It has sought a US court injunction to prevent any deal that does not have its consent.

In a letter to Toshiba’s board, Western Digital said Hynix’s participation in the consortium increased the likelihood of technology leakage and harm to future joint ventures.



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