Toshiba Buys Fujitsu's Hard Drive Business

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Less than a month after Fujitsu announced it would end production of read/write heads for hard drives, the company has sold off its HDD business to Toshiba. The two companies are aiming to have the transfer completed in the first quarter of 2009. Previously, Fujitsu was engaged in takeover talks with Western Digital, but the two couldn't agree on terms.

"Fujitsu will facilitate the transfer by bringing its HDD-related businesses and functions together in a new company," Fujitsu wrote in a press release. "Toshiba will acquire about an 80 percent stake in this company and make it a Toshiba Group subsidiary. In order to promote a smooth transfer, Fujitsu will continue to hold a stake of under 20 percent in the new company for a certain period of time, after which it will become a wholly owned subsidiary of Toshiba."

Toshiba, who is already a player in the 2.5-inch HDD market, looks to reinforce its position, while also moving in on the enterprise HDD market, an area Fujitsu has been very active. Toshiba is also looking at the solid-state drive (SSD) market, "fusing Toshiba's NAND flash memory technology with Fujitsu's enterprise HDD technology." Despite the heavy focus in the past several months, SSDs have been intentionally overlooked by Fujitsu, who has been turned off random write performance.

Toshiba said it will aim to raise its share in the overall HDD market to over 20 percent by 2015.

Image Credit: Fujitsu

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