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agree on HDD business transfer
Fujitsu and Toshiba have
signed a memorandum of understanding (MOU) on the transfer of Fujitsuís hard
disk drive (HDD) business to Toshiba. The companies aim to complete the
transaction in the first quarter of fiscal 2009.
Fujitsu will facilitate the transfer by bringing its HDD-related businesses
and functions together in a new company. Toshiba will acquire about an 80
per cent stake in this company and make it a Toshiba Group subsidiary.
In order to promote a smooth transfer, Fujitsu will continue to hold a stake
of under 20 per cent in the new company for a certain period of time, after
which it will become a wholly owned subsidiary of Toshiba.
Under the MOU, Fujitsu will transfer to Toshiba its HDD design, development,
manufacturing, sales, and all other functions currently carried out by
Fujitsu and Fujitsu Group companies, with the exception of Fujitsuís HDD
head and media businesses.
The consolidation of the two companiesí HDD businesses will enable Toshiba
to reinforce its already strong position as a leading vendor of small form
factor HDDs widely used in notebook PCs, mobile devices, automotive and
consumer electronics. It will also give Toshiba entry into the enterprise
HDD market for server and data storage system applications.
Entry into the enterprise business will allow Toshiba to further enlarge its
solid state drive (SSD) business by developing SSD products for servers and
enterprise storage systems, fusing Toshibaís NAND flash memory technology
with Fujitsuís enterprise HDD technology.
By taking advantage of the integration of Fujitsuís HDD businesses, Toshiba
also aims to strengthen collaboration with HDD parts suppliers and to
promote cost reductions and the development of new technologies.
Going forward, Toshiba aims to build on the consolidation to raise its share
in the overall HDD market to over 20 per cent by 2015.