Western Digital Reaffirms Its Commitment to Making Significant Investments in NAND Flash-Memory Joint Ventures, Including Fab...
August 03 2017 - 11:37AM
Business Wire
Western Digital Corp. (NASDAQ: WDC) today commented on its
commitment to the success of the three NAND flash-memory joint
ventures (“the JVs”) that Western Digital's SanDisk subsidiaries
operate with Toshiba Corporation (“Toshiba”).
Western Digital stated:
Western Digital is steadfast in its
commitment to the success of the JVs. We have been in constructive
dialogue with Toshiba over several weeks to come to mutually
acceptable terms around our planned investment in the JVs,
specifically in production equipment to be used at the new fab
currently under construction in Yokkaichi, Fab 6. Those discussions
are ongoing.
The JV operations are governed by agreements
entered into by both partners. The agreements set out a framework
for any investment by the partners in NAND manufacturing capacity –
such as the investment in equipment for Fab 6. The agreements give
us priority to participate in joint investments in Fab 6 equipment
through the JVs, and that is exactly what we intend to do.
Our Board of Directors has authorized
investments for our share of initial Fab 6 equipment. We remain
committed to making continued significant investments in Yokkaichi
and the surrounding communities to support the JVs and preserve
Yokkaichi as the world’s centerpiece of innovation in memory
technology development and manufacturing.
The company also noted that, on Aug. 2, 2017, the California
Court of Appeal First Appellate District denied Toshiba’s petition
to stay the temporary restraining order (“TRO”) that had been
granted in SanDisk’s favor by the Superior Court on July 11, 2017.
After a full briefing on the matter, the California Court of Appeal
denied Toshiba’s request to stay the TRO prohibiting Toshiba’s
lockout. The Court’s ruling dissolved the temporary stay of the
TRO, which prohibits Toshiba from preventing certain employees from
accessing shared databases and servers, and from refusing to ship
certain engineering wafers and samples to Western Digital in
Milpitas, California.
SanDisk is confident that it will succeed in its claims in
arbitration 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, its actions to protect such rights and its
commitment to the success of the JVs, and ongoing proceedings with
respect to those rights. 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.
Western Digital, WD and SanDisk are registered trademarks or
trademarks of Western Digital Corporation or its affiliates in the
U.S. and/or other countries. Other trademarks, registered
trademarks, and/or service marks, indicated or otherwise, are the
property of their respective owners. © 2017 Western Digital
Corporation or its affiliates. All rights reserved.
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Western Digital Corp.United
StatesMedia Contact:Jim Pascoe,
408-717-6999jim.pascoe@wdc.comorInvestor Contact:Bob Blair,
949-672-7834robert.blair@wdc.comorJoele Frank, Wilkinson Brimmer
KatcherEric Brielmann / Jed Repko / Ed Trissel415-869-3950 /
212-355-4449wdcmedia@joelefrank.comorJapanMedia Contacts:Emi Hatano,
090-5765-9730emi.hatano@sandisk.comorAshton ConsultingJohn Sunley /
Brendan Jennings03 5425-7220 / 090-7416-0180 / 050
7576-6190WDC_JapanPR@ashton.jp
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