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Toshiba and Western Digital run a flash memory fabrication facility in Yokkaichi, Mie Prefecture.
Business

Toshiba warns Western Digital not to interfere in chip biz sale

Dispute heats up as Japanese tech giant threatens to shut out workers

| Japan

TOKYO -- Toshiba is well within its rights to sell its memory operations, the Japanese conglomerate has told business partner Western Digital in response to efforts by the hard-drive supplier to block the auction, it was learned Tuesday.

Western Digital acquired fellow U.S. company SanDisk in May 2016, inheriting a memory production joint venture with Toshiba as part of the deal. The terms of the venture agreement restrict the sale of the business, Western Digital told Toshiba by letter last month, requesting exclusive negotiating rights.

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