Toshiba to invest extra ¥110 billion in Yokkaichi plant amid row with Western Digital


Toshiba Corp. said Wednesday it will make an additional investment of ¥110 billion to expand flash memory production at its Yokkaichi plant in Mie Prefecture.

Toshiba will ask whether U.S. partner Western Digital Corp. will participate in the fresh investment. If Western Digital chooses not to, Toshiba will make the investment on its own.

It is uncertain whether the U.S. hard-disk drive maker will join.

Western Digital has filed petitions with the International Chamber of Commerce’s International Court of Arbitration to stop Toshiba’s plans to invest ¥195 billion in the same plant single-handedly and sell the plant operator, Toshiba Memory Corp.

Toshiba said the fresh investment is intended to introduce production equipment at a facility under construction in the Yokkaichi plant in order to make large-capacity memory products.

As a result, Toshiba’s semiconductor-related investments will total ¥400 billion in the current year ending next March.

Western Digital has claimed that Toshiba does not have the right to make any single-handed investment in the Yokkaichi plant.

Western Digital has also criticized Toshiba for trying to exclude the U.S. firm from the plant’s operation to manufacture new memory products whose demand is seen rising and for increasing pressure to accept the sale of Toshiba Memory.

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