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Two major Japanese electronics manufacturers are in talks that could result in a deal that will change the balance of power among HDD suppliers, the source says.
There is a possibility that Toshiba will acquire the Fujitsu division, which develops, manufactures and sells HDD. If the deal, which is estimated at 340-450 million. Doll., held, Toshiba will become the world's largest supplier of miniature hard disk drives.
The slowdown in the global economy has forced companies to assess their position in the industry differently. If Toshiba considers the development and production of HDDs as a growing business, then Fujitsu, on the contrary, is looking for ways to get rid of the corresponding division, which brings the company losses, and to concentrate on other areas of activity.
Fujitsu reportedly already had similar negotiations with Western Digital, but they failed. A Fujitsu spokesperson noted that the company is in discussions with several parties about the future of the HDD division, considering a sale or an alliance.
Both Toshiba and Fujitsu specialize in 2.5-inch HDDs, mostly used in laptops. Combining resources of two manufacturers will allow to bypass competitors - Hitachi and Western Digital.