Wed, Sep 04, 2019 - Page 11 News List

Toshiba Memory ‘to benefit from’ Lite-On acquisition

By Natasha Li  /  Staff reporter

Toshiba Memory Holdings Corp is expected to earn significant gains from its acquisition of Lite-On Technology Corp’s (光寶科技) solid state drive (SSD) business, market researcher TrendForce Corp (集邦科技) said in a report yesterday.

Lite-On on Friday last week announced that it had approved the sale of its SSD business to the Toshiba Corp subsidiary for US$165 million, which is expected to be completed by April next year.

The transaction, which includes everything from operations and assets to client and supplier relationships, presents significant advantages for Toshiba Memory, as Lite-On’s assets and Toshiba Memory’s operations are highly complementary in terms of product lines and market positioning, TrendForce research director Alan Chen (陳玠瑋) said.

Toshiba Memory’s revenue from the enterprise SSD market is based on sales of Serial Attached SCSI (SAS) and SATA products, while it is working on improving its PCIe products to catch up with leading manufacturers, Chen said.

Lite-On, on the other hand, has already adopted PCIe for its main enterprise product lines and has accumulated much experience in the mass production of data centers and servers for major clients, he said.

Chen pointed to the difficulties that Toshiba Memory has faced and is still facing in establishing a presence in the original equipment manufacturer and retail markets, even after its acquisition of OCZ Storage Solutions, which is a major brand name on the SSD channel market.

However, Lite-On has a solid reputation in both markets thanks to its strong research and development (R&D) department and flexibility in terms of production, despite lacking the cost-related advantages of which Toshiba Memory boasts, Chen said.

Toshiba Memory might benefit enormously from the deal if it formulates the right marketing strategy while establishing a clear division of labor and integrating the Taiwanese company’s R&D capabilities, TrendForce said.

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