Toshiba to buy Fujitsu's HDD business


Toshiba to buy Fujitsu's HDD business

Warwick Ashford

Toshiba is to acquire most of rival Fujitsu's hard disk drive (HDD) business for an undisclosed sum as part of consolidation plans by both companies.

Electronics manufacturers are restructuring in the face of decreased demand in the economic downturn, and Toshiba hopes the deal will help it to grow its share of the HDD market.

Fujitsu is to group all its HDD-related businesses in new company. Toshiba will acquire an 80% stake in this company and make it a Toshiba Group subsidiary.

Under the agreement, Fujitsu will transfer to Toshiba its HDD design, development, manufacturing, and sales, with the exception of Fujitsu's HDD head and media businesses. Fujitsu will continue to hold a stake of under 20 percent in the new company for a certain period of time, after which it will become a wholly owned subsidiary of Toshiba.

Toshiba said the consolidation of the two HDD businesses will help the company reinforce its position as a supplier of small HDDs for notebook PCs, mobile devices and automotive electronics.

Toshiba also hopes the deals will clear the way for it to enter the enterprise HDD market for server and data storage system applications, where Fujitsu is a leader.

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