What Western Digital stands to lose in its growing war with Toshiba
The firms are in legal fight over rights to memory chips
San Francisco — Toshiba took another stab at its US joint venture partner Western Digital, saying it has no rights to new chip production that is vital to the future of the firms. The latest escalation of the fight between the two centres on a new factory called Fab 6. Toshiba said it would build the plant without participation from its US partner, thereby cutting off Western Digital from chips made at the factory. Western Digital inherited its stake in the joint venture when it bought SanDisk. "Toshiba is dismayed by Western Digital’s pattern of exaggerating SanDisk’s rights under the relevant agreements," the Tokyo-based company said in a statement. "Despite claims to the contrary, Western Digital does not now possess any legal ‘rights’ to participate in this phase of investment, which is an important investment in the next generation of flash memory." Western Digital countered with a statement, saying Toshiba’s position was wrong. "The terms of the agreements and our related lega...
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