Western Digital Challenges Toshiba’s Memory Business Sale

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Western Digital has started arbitration proceedings against Toshiba over plans to sell a stake in its memory business, creating uncertainty around one of the tech industry's biggest deals.

Western Digital has taken legal action against Toshiba by seeking arbitration over Toshiba’s plan to sell part of its memory business. The dispute could delay Toshiba’s efforts to raise funds through the sale of its valuable NAND flash memory unit.

The conflict began after Toshiba announced plans to sell an interest in its memory business to recover financial losses related to its U.S. nuclear power operations. The company’s memory division is one of its most valuable assets, attracting interest from several major technology companies.

Western Digital entered the dispute because of its connection with SanDisk, the storage company it acquired in 2016. SanDisk has long been a manufacturing partner with Toshiba in NAND flash memory joint ventures. According to Western Digital, Toshiba cannot transfer or sell interests related to these joint ventures without SanDisk’s approval.

Western Digital stated that Toshiba’s move to separate and sell part of the memory business violates existing joint venture agreements. The company has requested arbitration to prevent Toshiba from moving forward without consent.

Toshiba, however, denies violating any agreements. The company maintains that the sale process is lawful and that Western Digital has no valid reason to interfere.

This legal battle is important because Toshiba’s memory unit has attracted bids from several major investors and technology firms. A delay in the sale process could affect Toshiba’s financial recovery plans and may also impact competition in the global flash memory market.

The outcome of the arbitration will determine whether Toshiba can continue with the sale or whether it must first reach an agreement with Western Digital. Until then, uncertainty remains around one of the largest semiconductor deals in the industry.

This dispute highlights how strategic partnerships in the technology industry can become complicated when ownership and financial pressures collide.