Toshiba and Western Digital battle over prized chip unit up for auction
Tokyo — Western Digital said on Thursday it is still seeking arbitration in a dispute with Toshiba over the auction of its prized chip unit, arguing that a transfer of assets by the Japanese firm had not resolved what it calls a serious breach of contract. The two are at loggerheads over the sale of the unit — the world’s second-largest producer of NAND chips — that the Japanese conglomerate values at at least $18bn. Toshiba is depending on the auction to cover billions of dollars in cost overruns at its now bankrupt US nuclear unit Westinghouse. Western Digital, which jointly operates Toshiba’s main chip plant located in Yokkaichi, western Japan, has argued that the unit cannot be sold without its consent and has demanded exclusive negotiating rights. In a letter to the US firm’s lawyers dated May 31 and seen by Reuters on Thursday, Toshiba’s lawyers said joint venture interests had been moved back to the parent company from the chip unit, adding that this addressed Western Digital...
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