Dell, Toshiba enter $5 bln tech alliance
IRVINE, Calif., Sept 11 (Reuters) - Toshiba America Electronics Components Inc. said on Monday it signed a 3-year deal to supply Dell Computer Corp. <DELL.O> with memory and display products worth as much as $5 billion.
As the relationship develops, Round Rock, Texas-based Dell and Irvine, Calif.-based Toshiba America, a unit of Japan's Toshiba Corp. <6502.T>, intend to add other products to their alliance, such as batteries and color display tubes.
The agreement also includes an unspecified co-development deal between the two companies, said Toshiba America spokeswoman Annette Keller.
The initial partnership will run for three years, then be renewable in one-year increments.
Dell and Toshiba believe the alliance will allow them to lower costs and attain greater supply-chain flexibility and stability. Dell also believes the partnership will strengthen its future access to memory and LCDs.
"This agreement provides Dell a fast track to Toshiba's industry-leading products and emerging technologies, covering a diverse range of key electronic components," said Glenn Neland, Dell vice president of worldwide procurement.
"We need component suppliers who can provide not only stable delivery of products, but who also can deliver the most advanced capabilities for the next generation of enhanced computing systems." |
