Toshiba, Western Digital Settle Chip Unit Dispute (News)
Tokyo, Dec. 13 (Jiji Press)—Toshiba Corp. said Wednesday that it has settled a dispute with its flash memory business partner, Western Digital Corp., over its planned sale of subsidiary Toshiba Memory Corp.
The agreement to settle all litigation and arbitration represents a major step forward for the chip unit sale, a key part of the struggling Japanese electronics and machinery group's efforts to reinforce its financial base damaged by huge losses from the US nuclear plant business.
Western Digital will now withdraw its request to an international arbitration court for an injunction against the chip unit sale, and participate in a new facility investment project at a memory chip factory in Yokkaichi, Mie Prefecture, that it jointly runs with Toshiba.
Meanwhile, Toshiba will drop its lawsuit against the US hard disk drive maker, which has been filed with Tokyo District Court.
The two companies will also consider joint investment in a planned factory in Kitakami, Iwate Prefecture.[Copyright The Jiji Press, Ltd.]