Giblets: Toshiba to split off NAND production to improve cashflow woes

A couple of days ago, I reported that Seagate was shutting down one of its hard drive factories to save money and transition slowly to producing and selling solid state drives. That’s a major switch for them, but there’s an even bigger one coming: Toshiba may plan spin off their flash memory production into a separate company to also save money. Ever since the company had to severely underwrite their value in 2015, they’ve been losing money in every possible way thinkable. By shaving off their flash business, they may lose some vertical integration benefits, but they’d be able to earn money from it should it be successful.

Why is this big? Well, there’s another rumour attached to this one which suggests that spots for investors in this new flash memory company might be up for sale, and big names like Seagate or Western Digital (WD) might be able to buy a stake in it. WD would just get even more money as flash memory use increases, but Seagate would also benefit because they could get their flash memory cheaper, increasing the amount of integration in their products. There are some very interesting times ahead of us for the SSD market in 2017!

Source: Anandtech, Techpowerup

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