On August 30, Taiwan Lite-On Technology announced that the board of directors had transferred the solid-state storage (SSD) business unit to JS Storage Technology Co., Ltd. (referred to as Jianxing Company) to transfer the solid-state storage department to Toshiba.
The consideration for the transaction is tentatively set at $165 million in cash and is expected to be completed in the first half of 2020. Customs adjustments and regulatory approvals will be carried out in accordance with established practice.
Chen Guangzhong, vice chairman and CEO of Lite-On Group, said that due to the growing demand for data storage in the global market, the vertical integration of the solid-state storage business not only enriched upstream and downstream resources in the industry, but also rapidly increased operations. Scale to achieve solid state storage.
Chiba plans to increase its NAND flash shipments by expanding its sales channels. It is understood that after the completion of the acquisition, Toshiba can not only use Taiwan's Lite-On technology and PC manufacturers such as Dell, Hewlett-Packard, but also enhance the design and production of its data center SSD through Taiwan Lite-On Technology. In addition, Toshiba, which is scheduled to be renamed Kioxia in October this year, can increase its brand awareness by using new names on individual customers' SSDs.
Taiwan Lite-On Technology is a world-renowned electronics company founded in 1975. Its products include optoelectronic products, information technology and storage equipment. In addition, Taiwan Lite-On Technology is the owner of the solid-state drive brand Plextor, which is known for its low-cost, high-performance products. The predecessor of Taiwan's Lite-On technology storage business unit is the Japanese company Plextor.
Overall, the acquisition will enable Toshiba to meet the growing demand for ssd in PCs and data centers, which will be increasingly used by cloud services.