Toshiba Memory Holdings Corporation has announced it will acquire LITE-ON Technology’s Solid- State Drive (SSD) business for $165 million.
Expected to be finalised by the first half of 2020, the firm said the deal is now subject to customary closing adjustments, as well as regulatory approval.
Based in Taiwan, LITE-ON specialises in suppling optoelectronics, storage, semiconductors and other devices. In 2008, the company set up its SSD businesses to bring manufacturing of the tech in-house - and his since become one of the top revenue-generating PCIe SSD manufacturers globally.
Toshiba Memory said LITE-ON’s proven experience in building the drives for PCs and data centres will enable it to strengthen its SSD business and enhance its leadership position in the market.
“LITE-ON’s Solid State Drive business is a natural and strategic fit with Toshiba Memory and expands our focus in the SSD industry,” said Nobuo Hayasaka, acting president and CEO of Toshiba Memory Holding Corporation.
“This is an exciting acquisition for us, as it positions us to meet the projected growth in demand for SSDs in PCs and data centres being driven by the increased use of cloud services.”
The agreement will see TMHC take ownership of all aspects of the LITE-ON SSD brand, which includes staff, technology, equipment, intellectual property, as well as clients, suppliers and access to its channels.
That ownership also looks likely to include LITE-ON’s 45% stake in its joint-venture with Tsinghua Unigroup, according to The Register. In January last year, the firm entered into the partnership with the electronics manufacturer to build SSDs in Suzhou, China.
Due to begin producing chips in the final quarter of 2018, the venture should offer Toshiba an additional source of NAND wafers, separate to its existing joint-venture with Western Digital.
TMHC also confirmed that its IPO has been delayed until the first half of 2020, due to low NAND chip demand caused by the US-China trade dispute.
