Electronic components supplier Lite-On Technology Corp (光寶科技) yesterday said that its board of directors has approved the sale of its solid state drives (SSD) business to Toshiba Memory Holdings Corp for US$165 million.
Toshiba Memory, which is 40 percent owned by Toshiba Corp, is the world’s second-largest supplier of NAND flash memory chips.
SSD is a storage device used in consumer electronics, and enterprise and industrial equipment that is based on semiconductor NAND flash memory that Toshiba developed in 1987.
The transaction includes the operations and assets of Lite-On’s storage unit, with equipment, workers, intellectual property, technology, client and supplier relationships and inventories, Lite-On said.
The transfer needs to be approved and is estimated to be completed by April next year, Lite-On said.
The deal would not have a material effect on its finances and operations, the company said.
Nobuo Hayasaka, acting president and chief executive officer of Toshiba Memory, said in a statement that the acquisition of Lite-On’s SSD business positions it to meet projected growth in demand for SSDs in PCs and data centers, amid increased cloud services.
The Japanese multinational computer manufacturer’s move to acquire Lite-On’s SSD business would expand its sales channels and make use of Lite-On’s partnerships with US PC manufacturers such as Dell Inc, Business Korea reported two weeks ago.
Earlier, the Japan Times reported that Toshiba Memory was to postpone its initial public offering from next month until early next year, as the company’s earnings have been dragged by low demand for NAND flash memory chips amid the US-China trade dispute.
The company’s earnings were also affected by a power cut at its plant in central Japan in June, which resulted in a partial suspension for nearly a week.
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