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Home>Western Digital’s SanDisk Subsidiaries Initiate New Arbitration Proceedings Against Toshiba in the ICC International Court of Arbitration

Western Digital’s SanDisk Subsidiaries Initiate New Arbitration Proceedings Against Toshiba in the ICC International Court of Arbitration

Western Digital’s SanDisk Subsidiaries Initiate New Arbitration Proceedings Against Toshiba in the ICC International Court of Arbitration

09/21/2017

Western Digital’s SanDisk Subsidiaries Initiate New Arbitration Proceedings Against Toshiba in the ICC International Court of Arbitration

Toshiba's Decision to Unilaterally Invest in Manufacturing Equipment at Fab 6 Operations Constitutes a Breach of the JV Agreement

Terms of the JV Agreement are Clear; SanDisk has the Right to Jointly Invest in Expansions and Conversions of BiCS Manufacturing Capacity

Western Digital Corp. (NASDAQ: WDC) today announced that several of its SanDisk subsidiaries have filed an additional Request for Arbitration with the ICC International Court of Arbitration related to three NAND flash-memory joint ventures ("JVs") operated with Toshiba Corporation ("Toshiba").

On Aug. 3, 2017, Toshiba announced that it would unilaterally invest in manufacturing equipment for the Fab 6 clean room at the JV operations in Yokkaichi, Japan. The arbitration demand seeks, among other things, a permanent injunction preventing Toshiba from making unilateral investments in manufacturing equipment for Fab 6 without first giving SanDisk the opportunity to make a comparable investment in expansions and conversions of JV capacity for BiCS 3D NAND flash memory.

Western Digital commented:

It is unfortunate that SanDisk is forced to initiate binding arbitration to remedy Toshiba’s retaliatory breach of the JV agreement entered into by both SanDisk and Toshiba.

The terms of the agreement and our related legal rights are clear. The agreement gives SanDisk the right to participate in expansions and conversions of manufacturing capacity for BiCS 3D NAND flash memory products through joint investments in Fab 6 equipment. Toshiba has improperly denied SanDisk its rights to joint investment by unilaterally investing in manufacturing equipment at Fab 6.

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