Toshiba to build chip plant without partner Western Digital

TOKYO: Toshiba Corp is going forward with plans to build a new flash-memory manufacturing plant without longtime venture partner Western Digital Corp. The company will spend 195 billion yen ($1.8 billion) on construction of Fab 6 of its Yokkaichi memory plant in western Japan, the Tokyo-based company said in a statement on Thursday.

Toshiba, which owns the land, buildings and the production know-how at the factory, has split investments in the equipment with SanDisk Corp. Since the start of the joint supply venture in 2004. Western Digital acquired SanDisk last year.

The two companies are locked in an escalating legal fight over Toshiba’s plan to sell its share of the business to make up for losses in its nuclear power operations. Western Digital is arguing that it has a say in the sale, as well as right of first refusal. Further legal wrangling could delay the sale to a group of preferred bidders, putting Toshiba at risk of being delisted.

Toshiba said it is spending 15 billion yen more than originally planned, but going it alone will not impact production or development, according to the statement.