December 13th, 2017 by Adam Armstrong
Toshiba & WD Stop Suing Each Other & Decide To Work Together
Toshiba Memory Corporation and Western Digital Corporation announced that they would hang up the gloves and end ongoing disputes in litigation and arbitration. The agreement the two companies entered into not only ends the disputes they have been having but increases the relationship. The two companies will be working together more closely on flash memory in the future.
The agreement means that Toshiba and WD will jointly invest in the state-of-the-art memory fabrication facility now under construction at Yokkaichi, Fab 6. Fab 6 will be devoted entirely to producing BiCS FLASH, 3D flash memory. The two companies will also work together on a new flash wafer fabrication facility, which will be constructed in Iwate, Japan.
This can be both good and bad. On the one hand combining the two giants technology can be beneficial in both the innovation and price arenas. On the other hand it puts less overall players on the board and less competition/reason to innovate. Less competition can also eventually lead down the road of higher prices. But for the time being we will have to wait and see.