Western Digital To Split Flash Memory Business

Western Digital said on Monday it would spin off its flash memory business that has been grappling with a supply glut after talks of merging the unit with Japan's Kioxia stalled. From a report: The split will leave the data storage products maker with its traditional hard-disk drive business and create two publicly traded firms, giving into demands from activist investor Elliott. The move clears years of uncertainty over Western Digital's flash memory unit that was built through its $19 billion purchase of SanDisk in 2016 and caters to the smartphone and computer industries. Demand for flash chips has slumped after the pandemic, leaving the market awash in supply and increasing the pressure on chipmakers to consolidate. Since 2021, Western Digital and its manufacturing partner Kioxia have been in talks for a merger that would create a company that controls a third of the global NAND flash market.

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