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takyon writes:

Toshiba is considering splitting its NAND business into a separate company and selling a stake in it to Western Digital or another investor:

In the recent months, Toshiba ran into a new accounting scandal that may require it to write down as much as 4 billion dollars because of cost overruns at its U.S. nuclear power business. The exact number has not been finalized, but the company is already studying various possibilities to offset the massive loss, which would anger its investors after the company already faced an accounting scandal in 2015. Nikkei reports that Toshiba is mulling to spin off its semiconductor business into a separate entity and then sell a 20% in the new company to someone like Western Digital for about $2.7 billion, while retaining 80% stake as well as operational control of the unit. Toshiba confirmed that it is studying the possibility of its memory business spin-off, but noted that no decision has been made and that the in-house NAND production is a focal business.

Toshiba and Western Digital already operate the world's largest NAND flash production complex in Yokkaichi, Mie prefecture, Japan. Formally, the manufacturing facilities belong to joint ventures between the two companies and WD buys wafers from Toshiba. It is not completely clear how the spinoff would work in this case and which parts of Toshiba's business will be up for sale.

Also at Tom's Hardware.

[Continued...]

takyon writes:

A joint bid by the U.S. company Broadcom Limited and the Japanese government may keep Toshiba's chip business out of the hands of China or South Korea:

A Japanese government-backed fund and policy bank are considering a joint bid with Broadcom Ltd for Toshiba Corp's semiconductor business, a move that would vault the U.S. chipmaker into the lead to buy the prized unit, the Asahi newspaper said on Wednesday.

A bid by Innovation Network Corp of Japan and the Development Bank of Japan with Broadcom would appear to be aimed at preventing Toshiba's chip technology from going to rivals in China or South Korea, the Asahi said, citing an unidentified source.

INCJ Chairman Toshiyuki Shiga said on Tuesday the fund was looking at the chip auction although it had not participated in the first round of bidding. People familiar with the matter have told Reuters INCJ might invest in the business as a minority partner - a move that would help the government prevent a sale to bidders it deems risky to national security.

Previously: Toshiba and SanDisk Announce 48-Layer 256 Gb 3D NAND
Toshiba in Trouble
Toshiba Teasing QLC 3D NAND and TSV for More Layers
Toshiba Envisions a 100 TB QLC SSD in the "Near Future"
Toshiba Considers NAND Business Split; Samsung Delays Release of 4 TB SSDs (WD is a bidder)
SK Hynix to Bid for Toshiba's Memory Business
Toshiba Nuked Half its Assets
Huge Nuclear Cost Overruns Push Toshiba's Westinghouse Into Bankruptcy
Toshiba Warns That its Survival is at Risk

Original Submission

takyon writes:

http://www.reuters.com/article/us-samsung-elec-chips-idUSKBN18P04K

Tech giant Samsung Electronics Co Ltd said on Monday it is considering adding NAND memory chip production capacity at its manufacturing base in China amid an industry-wide boom that will likely fuel record sales for memory suppliers.

Samsung, the world's biggest memory chip maker by sales, has already invested $7 billion in the Xi'an facility to make 3D NAND memory chips. The chips are used for high-end data storage products on electronic devices such as smartphones, personal computers and data servers, and their prices have surged in recent months as suppliers struggle to keep up with demand.

[...] Researcher IHS expects this year's memory industry revenue to jump 32 percent to a record $104 billion.

Recently, Western Digital sought to intervene in the sale of Toshiba's memory business, rather than purchase the division itself. Originally valued at $18 billion, Foxconn has bid $27 billion and Broadcom bid $28 billion.

Western Digital, through its SanDisk subsidiary, is seeking arbitration to prevent Toshiba from selling off its stake in their flash memory joint venture without the consent of Western Digital. [...] Western Digital does have leverage in their preexisting relationship with Toshiba as co-owner of their flash memory joint venture. Western Digital is alleging that Toshiba is required to obtain Western Digital's consent before spinning off or selling Toshiba Memory, and that Toshiba's actions so far have violated their agreements with Western Digital. Western Digital has initiated arbitration proceedings against Toshiba, seeking to block further action without Western Digital's consent and to reverse the Toshiba Memory spin-off.

Original Submission

takyon writes:

Western Digital has announced that it will begin production of 96-layer 3D NAND in 2018. It will make triple-level cell and quad-level cell NAND with die capacities ranging from 256 Gb to 1 Tb. QLC NAND is predicted to have 100-150 program/erase cycles (endurance) compared to about 1000 for TLC:

Given such endurance, it is logical to expect 3D QLC NAND to be used for primarily removable storage as well as for ultra-high capacity datacenter drives for the so-called near-WORM (write once read many) storage applications. For example, Toshiba last year discussed a QLC-based datacenter SSD with 100 TB capacity for WORM apps.

Western Digital plans to begin sampling of select 96-layer BiCS4 3D NAND configurations in the second half of this year, but the manufacturer does not specify which dies will sample when. As for mass production, Western Digital intends to start volume manufacturing of their 96-layer 256 Gb 3D NAND in 2018, with other dies to follow later. Based on Western Digital's announcements made earlier, the company will gradually introduce more sophisticated BiCS4 96-layer configurations in 2018 and 2019, before moving to BiCS5 sometimes in 2020. That said, it makes sense to expect the highest capacity BiCS4 ICs to ship later rather than sooner.

[BiCS = "Bit-Cost Scaling". Yes, it does not make sense to me, either. --Ed.]

Original Submission

takyon writes:

Some news outlets reported that Western Digital was close to acquiring Toshiba's memory business, but that had not been finalized as of Tuesday:

Toshiba Corp now favors a group led by Bain Capital LP and SK Hynix Inc to buy its prized semiconductor business, as it failed to bridge key gaps with its business partner and rival bidder Western Digital Corp, two people briefed on the matter said on Tuesday.

The dramatic twist in the sale process, beset by legal wrangling and revised bids, comes just a day before Toshiba's latest deadline. The Japanese conglomerate, which needs to sell the chip business to plug a huge hole in its finances, had been trying to seal a deal by Wednesday with the Western Digital group but now hopes to reach agreement with the Bain group by next week, said the sources, who declined to be identified as the talks were private.

A Toshiba spokesman said the firm could not comment on details of the talks. The parties have already missed two deadlines by Toshiba's banks, which want a deal to pump $18 billion or more into the company to pull it out of negative shareholder equity and prevent it from being delisted. Yoshimitsu Kobayashi, an external Toshiba director, told reporters earlier on Tuesday that although the deadline is important, it is also important that negotiations head in a good direction.

Apple, a buyer of Toshiba's NAND chips, reportedly threatened Western Digital with a boycott of its products if it took complete control of Toshiba's memory business. But it did offer $460 million in acquisition financing for a group including WD as long as WD remained a minority investor.

Update: Toshiba says it favors a bid from a group led by Bain Capital, but is still open to better offers.

Toshiba to focus on chip talks with Bain, but doesn't rule out other suitors

Start the Bidding War, Toshiba

Previously: Broadcom and Japanese Government Considering Bid for Toshiba's Semiconductor Unit
Samsung Could Boost NAND Production Capacity, WD Intervenes in Toshiba Memory Sale
Toshiba Sues Western Digital as it Seeks to Sell its Memory Business to a Third Party

Original Submission