Toshiba is working to construct a new $1.8 billion factory that’ll be focused on memory components. Fab 6 of the company’s Yokkaichi semiconductor facility in western Japan will be constructed without involvement from Western Digital, a partner of Toshiba’s.
It already owns the land and the buildings in the area. Though some investments had been made by SanDisk, which was bought by Western Digital last year. Since then, there’s been a legal battle between the companies.
Toshiba has held discussions with SanDisk over several weeks, but could not arrive at an agreement because of the vast difference in opinions over capital spending. We need to boost our production capability to meet increasing demand for Nand flash.
Western Digital isn’t happy about Toshiba planning to move forward with the facility. And since there are disagreements between the companies that’ll slow down the development project, competitors like Samsung could get a boost.