JCET Group, a Chinese chip assembly and testing company, announced its intention to acquire an 80% ownership stake in a flash memory facility in Shanghai from Western Digital Corporation for $624 million in cash. The facility, known as SanDisk Semiconductor Shanghai, produces iNAND flash memory modules, SD, and MicroSD components used in various industries such as telecommunications, automobiles, and consumer electronics.
Western Digital made the decision to divest its flash memory business last year amid an oversupply issue in the market. This move came after discussions to merge the unit with Japan’s Kioxia fell through.
Pending approval from Chinese regulators, the acquisition will enable JCET to increase its market share in the data storage industry significantly. By purchasing this stake, JCET aims to strengthen its ties with Western Digital, a key client with whom they have a long-standing partnership. It is anticipated that Western Digital will continue to place orders at SanDisk Semiconductor Shanghai following the completion of the transaction.
Expanding their footprint in the data storage sector, JCET views this acquisition as a strategic step towards future growth and collaboration within the industry. This partnership is poised to benefit both companies and enhance their competitive positions in the market.
(Original Reporting by Roxanne Liu, Ella Cao, and Kane Wu. Edited by Ed Osmond, Jason Neely, and Louise Heavens)
