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Toshiba: Western Digital has no right to new chip production

Toshiba Corp. will proceed with a new memory chip production factory without Western Digital Corp., saying the latter has no right to new chip production, according to Bloomberg News.

Western Digital is a partner in a U.S. chip-manufacturing joint venture with Toshiba. Western Digital inherited its stake in the joint venture through the acquisition of SanDisk.

Toshiba said it was "dismayed by Western Digital's pattern of exaggerating SanDisk's rights under the relevant agreements," adding that its U.S.-based partner has no legal rights to participate in the new Fab 6 factory, Bloomberg noted, citing a statement from Toshiba.

Refuting the Japanese company's claim, Western Digital said it was "confident" that it will receive its share of new chip production, the report noted.

The two companies are in a legal battle over Toshiba's decision to sell its share of the joint venture, to make up for a multibillion-dollar write-down at its U.S. nuclear unit Westinghouse Electric Co. LLC. Western Digital sought an injunction to block the sale before the duo reached a settlement.