World Economy

$4.6 Billion Chip-Making Joint Venture

$4.6 Billion  Chip-Making Joint Venture$4.6 Billion  Chip-Making Joint Venture

Western Digital will invest about 500 billion yen ($4.68 billion) over the next three years in a memory chip venture with Toshiba, helping their joint operations recover after a bruising legal spat between the companies, Nikkei reported. The investment will help fund construction of a production building at Toshiba’s Yokkaichi plant in Mie Prefecture, home to joint chip-making operations with Western Digital, as well as work on a plant in Kitakami, Iwate Prefecture, set to open in 2020. This will let Toshiba Memory and Western Digital steadily increase joint production of 3-D flash memory chips, which have significantly higher data capacity than their conventional counterparts. Demand for high-capacity memory is growing rapidly, led by customers operating data centers. The two companies have agreed to split capital spending evenly, excluding for the cost of buildings and the like. Toshiba Memory announced last autumn that it planned to put more than 300 billion yen into the joint operations annually. Western Digital’s planned investments will help keep pace with its partner.


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