Western Digital’s SanDisk Subsidiaries Initiate New Arbitration Proceedings Against Toshiba in the ICC International Court ...
September 20 2017 - 5:23PM
Business Wire
Toshiba's Decision to Unilaterally Invest in
Manufacturing Equipment at Fab 6 Operations Constitutes a Breach of
the JV Agreement
Terms of the JV Agreement are Clear; SanDisk
has the Right to Jointly Invest in Expansions and Conversions of
BiCS Manufacturing Capacity
Western Digital Corp. (NASDAQ: WDC) today announced that several
of its SanDisk subsidiaries have filed an additional Request for
Arbitration with the ICC International Court of Arbitration related
to three NAND flash-memory joint ventures ("JVs") operated with
Toshiba Corporation ("Toshiba").
On Aug. 3, 2017, Toshiba announced that it would unilaterally
invest in manufacturing equipment for the Fab 6 clean room at the
JV operations in Yokkaichi, Japan. The arbitration demand seeks,
among other things, a permanent injunction preventing Toshiba from
making unilateral investments in manufacturing equipment for Fab 6
without first giving SanDisk the opportunity to make a comparable
investment in expansions and conversions of JV capacity for BiCS 3D
NAND flash memory.
Western Digital commented:
It is unfortunate that SanDisk is forced to
initiate binding arbitration to remedy Toshiba’s retaliatory breach
of the JV agreement entered into by both SanDisk and Toshiba.
The terms of the agreement and our related
legal rights are clear. The agreement gives SanDisk the right to
participate in expansions and conversions of manufacturing capacity
for BiCS 3D NAND flash memory products through joint investments in
Fab 6 equipment. Toshiba has improperly denied SanDisk its rights
to joint investment by unilaterally investing in manufacturing
equipment at Fab 6.
We believe that our NAND supply requirements
through calendar 2018 are secure, with no meaningful supply from
Fab 6 anticipated until calendar year 2019.
We will continue to act in the best interests
of our stakeholders, protecting SanDisk’s interests in the JVs and
consent rights through both our request for injunctive relief and
the arbitration process.
The arbitration requests filed by Western Digital’s SanDisk
subsidiaries on May 14, 2017, and July 5, 2017, continue to move
forward 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 and Fab 6 at the JV
operations in Yokkaichi, Japan, SanDisk’s rights under the JV
agreement and its actions to protect such rights, ongoing
proceedings with respect to those rights, and our NAND supply
requirements. 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-K filed with the SEC on Aug. 29, 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ー7416-0180 / 050
7576-6190WDC_JapanPR@ashton.jp
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