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Samsung Could Boost NAND Production Capacity, WD Intervenes in Toshiba Memory Sale

Accepted submission by takyon at 2017-05-29 11:04:55
Techonomics

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

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 [anandtech.com], 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.


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