Japanese conglomerate Toshiba Corp have become embroiled in a row with US firm Western Digital Corp over the sale of its prized and highly sought-after chip unit. Toshiba has instructed them in no uncertain terms to not interfere with how it proceeds with the sale. It has refuted claims made by Western Digital Corp that they breached a joint-venture contract.
Western Digital is a partner in Toshiba’s main semiconductor facility – and was one of the bidders for the chip business. However, the US entity has claimed that the Japanese company is violating their contract by transferring their joint venture’s rights to the newly formed unit.
In a letter which was issued at the beginning of this month by legal representatives of Toshiba, the organization which is headquartered in Tokyo disputes the argument put forward by Western Digital Corp and insisted that it would pursue all avenues available if it sees a continuation of interference in the sale process.
A source that has seen a leaked version of the letter has claimed that within the contents of the letter the Japanese conglomerate refers to Western Digital Corp by saying the following, “Western Digital’s campaign constitutes intentional interference with Toshiba’s prospective economic advantage and current contracts. It is improper and must stop.”
In addition to this, sources claim that Toshiba’s legal affairs team has also accused the US organization of failing to sign some joint venture agreements. It has also emerged that if Western Digital refuses to sign a joint venture agreement by May 15 – then the chip unit would protect its intellectual property rights by suspending Western Digital employee’s access to all of the unit’s facilities, network and databases.
When contacted in relation to the argument brewing between the two organizations and the letter that was issued by Toshiba, a spokesman for Western Digital based in Japan declined to make an immediate comment on the matter.