Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc. -- Ignore unavailable to you. Want to Upgrade?

To: bigchad who wrote (3388)	12/13/2017 9:25:05 PM
From: SiliconAlley	Read Replies (1) \| Respond to of 4833

Let's just call this settlement between Toshiba Memory Corp. and Western Digital Corp. exactly what it is: a victory for WDC. Certainly not a victory for WDC. They are now burdened with more cooks in the kitchen, and only settled because Toshiba had the upper hand by denying access to future supply (not covered by current fab agreements) WDC's claims were probably pretty flimsy anyway. WDC's consent rights were rock solid. The author knows not of what he speaks. Toshiba got everything they wanted. WDC survived, but is crippled for life.

To: bigchad who wrote (3388)	12/13/2017 10:14:55 PM
From: Sam	1 Recommendation Recommended By Mesaverde Respond to of 4833

Had it owned TMC -- both the old and the new factories -- Western Digital would have had to wear the losses from any cyclical downturn in chip prices. By not owning TMC, Western Digital, as a major chip buyer, can benefit from those lower prices without fully taking on the opposite side of the trade. That guy doesn't know what he is talking about. He is acting like WDC will just buy chips at cost from Toshiba and Toshiba will bear the risk of the fab. No, that isn't the way the JV works. WDC shares in the risk, they just split all the costs of the fab's operations. If NAND goes into a tailspin, WDC can't just tell Toshiba that they don't want their share of the chips and they won't pay.