Western Digital Unveils Latest Development in Company Split

Western Digital is separating into two independent companies and is progressing well with the process, which is scheduled for completion in the second half of 2024.

1. Progressing well with various projects underway, including legal entity establishment, customer and supplier contract transfers, government filings preparation, and executive leadership appointments for both HDD and Flash companies. 2. Strategic move to allow each company to focus on their respective markets and capitalize on growth opportunities. 3. Strong product portfolios and solid operational and financial leadership for both businesses.

Western Digital Corp. has provided an update on its plan to separate into two independent, publicly traded companies. The separation, scheduled for the second half of 2024, is progressing well with various projects underway, including legal entity establishment, customer and supplier contract transfers, government filings preparation, and executive leadership appointments for both HDD and Flash companies.

The decision to separate the HDD and Flash businesses was announced in October 2023, with the aim of allowing each company to focus on their respective markets and capitalize on growth opportunities. This strategic move will enable them to operate more efficiently and strengthen their market leadership positions.

Western Digital has been laying the groundwork for this separation for several years, building market-leading portfolios, enhancing operational efficiency, and creating separate Flash and HDD product business units. Both businesses are now well-positioned with strong product portfolios and solid operational and financial leadership.

The current phase of the separation process involves significant progress in various critical projects. The teams are establishing legal entities in 18 countries, preparing independent financial models, finalizing SEC and IRS filings, conducting contract assignments for customers and suppliers, and designing organizational structures for both companies.

CEO David Goeckeler expressed his satisfaction with the progress made so far, highlighting the complexity of the transaction involving multiple countries and data storage technology brands. He emphasized the importance of creating a strong foundation for a successful transition to independent companies.

The executive leadership team for the Flash spinoff company is also taking shape, with Goeckeler appointed as CEO Designate. Goeckeler expressed excitement about the Flash business’s potential for market growth and the development of disruptive new memory technologies.

Irving Tan, currently Executive Vice President of Global Operations at Western Digital, will assume the role of CEO for the remaining standalone HDD company. Goeckeler praised Tan’s impact on the transformation of the company’s global operations and expressed confidence in his leadership.

These executive appointments are subject to completion of the planned separation and satisfaction of customary conditions. Additional executive leaders for both companies will be announced later.

Western Digital will continue to provide updates on the separation process as key projects progress. With its focus on innovation, performance, and quality, Western Digital is a leading data storage producer, powering devices from everyday use to the cloud.

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Background Information

About Western Digital: Western Digital, established in 1970, is a important data storage solutions provider known for its wide range of hard drives and solid-state drives. Catering to various applications, from personal computers to enterprise storage systems, Western Digital emphasizes data management and security. With a reputation for reliability and innovative solutions, the company has been pivotal in shaping the storage industry. Their products are trusted by individuals, businesses, and data centers worldwide

Technology Explained

HDD: A Hard Disk Drive (HDD) is a classic data storage device that utilizes spinning disks, or platters, coated with a magnetic material to store and retrieve data. An actuator arm with read/write heads accesses data by moving over the spinning platters. HDDs offer large storage capacities at a comparatively lower cost per gigabyte, making them suitable for applications where massive data storage is required, such as servers and desktop computers. However, HDDs are slower in terms of read and write speeds compared to SSDs due to the mechanical nature of their operation. They are more susceptible to physical shocks and are less energy-efficient due to the need to constantly spin the platters.