On August 30, Taiwan Lite-On Technology announced that the Board of Directors has transferred to the company, through the Solid State Storage (SSD) business division, to JS Storage Technology Co., Ltd. (referred to as Jianxing Company) and to transfer the Solid State Storage Division to Toshiba.
The consideration for this 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 conducted in accordance with established practice.
Chen Guangzhong, vice chairman and chief executive officer of Lite-On Group, said that in view of the growing demand for data storage in the global market, the vertical integration of solid-state storage business through this transaction will not only enrich the upstream and downstream resources of the industry, but also rapidly increase the scale of operations to achieve solid-state storage. Career and Toshiba win-win.
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 and 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.
Nobuo Hayasaka, acting president and CEO of Toshiba Storage Holdings, said the acquisition will enable it to meet the growing demand for ssd in PCs and data centers driven by increased use of cloud services.
Taiwan Lite-On Technology is a world-famous 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 SSD 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.