Western Digital claims that Toshiba's actions in their ongoing dispute is harming customers

Western Digital Corp said on Thursday that legal action and other moves taken by Toshiba Corp in their dispute over the sale of its prized memory chip unit were harming Toshiba's stakeholders and customers.

Toshiba filed a lawsuit on Wednesday against Western Digital, which jointly runs Toshiba's main semiconductor plant, for 120 billion yen (£0.77 billion), claiming that an arbitration request and lawsuit by the California-based firm interfered with the sale of the chip unit.

It also blocked certain Western Digital employees from accessing databases related their joint ventures.

Previously, the Japanese government and Bain Capital were bidding on this semiconductor manufacturing business company. And even though Toshiba was keen on taking the bid, other companies like Foxconn and Sharp Corporation continued showing interest in bidding for this company.

Foxconn, previously known as Hon Hai Precision Company Limited,  was backed by US tech giants like Amazon, Apple, and Dell. Meanwhile, last year Toshiba had sold their domestic appliance business and Toshiba Lifestyle for $450 million. They had sold 80 percent of their stake in these businesses.

Toshiba is depending on the sale of the unit, the world’s second-largest NAND chip maker, to cover billions of dollars in cost overruns at its now-bankrupt U.S. nuclear unit Westinghouse.

Reuters


Published Date: Jun 29, 2017 01:36 pm | Updated Date: Jun 29, 2017 01:36 pm