toshiba hdd 540x419 Toshiba and Western Digital sign agreement to exchange HDD assets

Toshiba and Western Digital have signed an agreement to exchange certain assets relating to their hard disk drive (HDD) businesses in efforts to increase capacity and expand market portfolios.

Toshiba and Western Digital have signed an agreement to exchange certain assets relating to their hard disk drive (HDD) businesses in efforts to increase capacity and expand market portfolios.

 
The deal will see Toshiba acquire a number of Western Digital's 3.5-inch HDD manufacturing equipment and related intellectual property, opening up the potential for new hard drive releases. Toshiba will also acquire manufacturing equipment for near-line HDDs for server applications.
 
Meanwhile, Western Digital will acquire complete control of Toshiba Storage Device Thailand, Toshiba's HDD manufacturing subsidiary in Thailand. This will give Western Digital the potential for additional capacity, which will help it pump out hard drives into what is still a market drought after last year's floods in the country, providing, of course, that the factories are still in working order.
 
toshiba hdd 540x419 Toshiba and Western Digital sign agreement to exchange HDD assets
 
Toshiba is hoping to become the market leader in HDDs, SSDs, and NAND flash, with this deal expanding its HDD portfolio so that it covers all segments of the HDD market. It also enhances Toshiba's capacity to make near-line HDDs for the server market, which it expects to boom.
 
It is not clear if this was a simple one for one exchange or if either company provided additional financial payment. If it is the latter neither company has released the figures.
 
The companies hope to complete the deal by the end of March once it meets approval by the relevant authorities. This could be delayed, however, as it is also dependant on Western Digital's acquisition of Hitachi Global Storage Technologies.