Toshiba and Western Digital finally reached a settlement: or to abandon application for arbitration

Due to related issues in the sale of the semiconductor business, there was a certain dispute between Toshiba and partner Western Digital. However, there are rumors that both parties have agreed in principle to settle the dispute in the chip division. However, Western Digital did not respond to this rumor.

Toshiba and Western Digital finally reached a settlement: or to abandon arbitration (picture from Google)

The insider mentioned that the Toshiba Group’s board of directors has approved a framework for a settlement agreement and both parties hope to reach an agreement next week. Toshiba hopes that Western Digital will be able to abandon arbitration applications in return for investment in new advanced flash memory chip production lines. A Toshiba spokesperson said they are open to reconciliation with Western Digital, but they will not disclose further information.

At the end of October, Toshiba’s shareholders had formally approved the sale of the company's flash chip subsidiary at ¥2 trillion (US$17.5 billion) to Bain Capital’s consortium.

In fact, before the shareholders meeting, Toshiba announced on September 28 that it agreed to sell its storage chip business to a consortium of US, South Korean and Japanese investors. It is understood that Bain Capital led the bid for the consortium, including Apple, Dell, Seagate Technology, Kingston and South Korea's chip maker Hynix. It is understood that Toshiba chose to sell its flash chip business subsidiary, hoping to take advantage of this huge loss in the nuclear power business, quickly reverse the plight of insolvency, and avoid stocks being withdrawn from the Tokyo Stock Exchange in March next year.

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