Western Digital plans to spin off the flash memory business

Western Digital recently announced that, with the concurrence of its board of directors, it intends to spin off its flash memory business, aiming to propel its operations in a more streamlined manner.

This resolution emerged in the aftermath of the company’s failed acquisition of Kioxia and the subsequent withdrawal of their purchase agreement last week. It is surmised that segregating its hard drive and flash memory divisions would potentially catalyze greater market advantages.

Currently, Western Digital’s flash memory operations predominantly stem from its acquisition of SanDisk in 2016 for $16 billion, under which a diverse product portfolio has been introduced.

Evaluating the company’s future strategic trajectory and the decision to bifurcate the hardware and flash memory businesses, Western Digital anticipates concluding this process by the latter half of 2024.

Prior to this, the acquisition of SanDisk positioned Western Digital as the fourth-largest flash memory provider globally. The firm initially envisaged expanding its market footprint by acquiring Kioxia, thereby challenging competitors, including Samsung. However, objections from Kioxia’s indirect investor, South Korea’s SK Hynix, led to the dissolution of the acquisition pact.