Western Digital Comments on Recent Actions Taken by Toshiba
June 29 2017 - 12:31AM
Business Wire
Reaffirms Commitment to Invest in the JVs,
Including Fab 6
Western Digital Corp. (NASDAQ: WDC) today issued the following
statement regarding Toshiba Corporation’s (“Toshiba”) recent
actions, including its decision to prohibit certain employees from
accessing shared databases related to the three NAND flash-memory
joint ventures operated with Western Digital’s SanDisk subsidiaries
(“JVs”) as well as, in some instances, access to the JVs’
facilities, and its decision to seek a provisional disposition
order against Western Digital in the Tokyo District Court:
Western Digital is strongly focused on the
success of the JVs, and over the past 17 years has made substantial
investments to support and grow this world-class venture. We remain
committed to upholding all of our commitments and obligations as a
partner in the JVs, including the vigorous protection of trade
secrets. Any claims by Toshiba to the contrary are frivolous and
without merit. We also note that operations at the JVs are ongoing
and SanDisk continues to be entitled to its 50 percent share of the
JVs’ output.
Toshiba took an unprecedented and retaliatory
action to prohibit certain employees from accessing shared
databases and, in some instances, the JVs’ facilities themselves.
This action will have the consequence of harming not only Toshiba’s
stakeholders, but also our respective customers.
Western Digital has not received any legal
filings and therefore is unable to comment on the specific claims
made by Toshiba in Tokyo District Court. However, the process to
resolve disputes is clear: under the JV contracts, disputes are
required to be resolved through arbitration with the ICC
International Court of Arbitration. The arbitration proceedings are
ongoing, and SanDisk’s filing for preliminary injunctive relief in
the Superior Court of California for the County of San Francisco
seeks to ensure that the ICC International Court of Arbitration
will be given an appropriate opportunity to resolve the
disputes.
We believe the actions taken by Toshiba are
continued attempts to both pressure Western Digital to relinquish
its previously agreed upon and legitimate consent rights, and to
distract Toshiba’s stakeholders following its annual general
meeting. It is surprising that Toshiba would take such actions
given the implications for its employees, customers, shareholders
and creditors.
Western Digital also reiterated its commitment to jointly invest
in the JVs, including Fab 6 in Yokkaichi, Japan:
As Western Digital has previously stated, we
fully intend to invest in the JVs, including Fab 6, to continue our
ongoing conversion from 2D NAND to 3D NAND. Commercial volumes from
Fab 6 are not expected until mid-calendar year 2018. Our commitment
to make continued significant investments in Yokkaichi and the
surrounding communities to support the JVs and preserve it as the
world’s centerpiece of innovation in memory technology development
and manufacturing is unchanged.
Previously SanDisk filed a request for injunctive relief seeking
to prevent Toshiba from transferring its JV interests until
SanDisk’s claims can be heard in arbitration. SanDisk looks forward
to presenting its case to the Superior Court of California for the
County of San Francisco on July 14, 2017. In addition, SanDisk is
confident that it will succeed on the legal merits of its
arbitration request filed on May 14, 2017, and the case continues
to move forward in the ICC International Court of Arbitration.
About Western Digital
Western Digital is an industry-leading provider of storage
technologies and solutions that enable people to create, leverage,
experience and preserve data. The company addresses ever-changing
market needs by providing a full portfolio of compelling,
high-quality storage solutions with customer-focused innovation,
high efficiency, flexibility and speed. Our products are marketed
under the HGST, SanDisk and WD brands to OEMs, distributors,
resellers, cloud infrastructure providers and consumers. Financial
and investor information is available on the company's Investor
Relations website at investor.wdc.com.
Forward-Looking Statements
This news release contains certain forward-looking statements,
including statements concerning the JVs, SanDisk’s rights under the
JV agreements and its actions to protect such rights and Western
Digital’s or SanDisk’s commitments and obligations as a partner of
the JVs, including to invest in Fab 6 and commitments in Yokkaichi
and the surrounding communities to support the JVs. There are a
number of risks and uncertainties that may cause these
forward-looking statements to be inaccurate including, among
others: uncertainties with respect to the company's business
ventures with Toshiba; volatility in global economic conditions;
business conditions and growth in the storage ecosystem; impact of
competitive products and pricing; market acceptance and cost of
commodity materials and specialized product components; actions by
competitors; unexpected advances in competing technologies; our
development and introduction of products based on new technologies
and expansion into new data storage markets; risks associated with
acquisitions, mergers and joint ventures; difficulties or delays in
manufacturing; and other risks and uncertainties listed in the
company's filings with the Securities and Exchange Commission (the
"SEC"), including the company's Form 10-Q filed with the SEC on May
8, 2017, to which your attention is directed. You should not place
undue reliance on these forward-looking statements, which speak
only as of the date hereof, and the company undertakes no
obligation to update these forward-looking statements to reflect
subsequent events or circumstances.
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version on businesswire.com: http://www.businesswire.com/news/home/20170628006557/en/
Western Digital Corp.Media Contact:Jim Pascoe / Steve
Shattuck408-717-6999 / 949-672-7817jim.pascoe@wdc.com /
steve.shattuck@wdc.comorInvestor Contact:Bob
Blair949-672-7834robert.blair@wdc.comorJoele Frank, Wilkinson
Brimmer KatcherEric Brielmann / Jed Repko / Ed Trissel415-869-3950
/ 212-355-4449wdcmedia@joelefrank.com
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