Western Digital, alongside its earnings results on Monday, announced its decision to split its company into two separate entities. These two companies will work independently, focusing on flash memory and hard drive storage solutions.
According to Western Digital, this decision will help the company grow and realize its full potential in the storage business.
SanDisk, a flash memory manufacturer acquired by Western Digital for $19 billion in 2016, will also now be working independently.
The initial plan was to merge SanDisk into the company. However, the new decision to split the company will allow SanDisk to work as an independent entity looking over the flash division.
CEO David Goeckeler said that the HDD and Flash divisions are ideally positioned to benefit from the potential market dynamics of the data storage sector. From his perspective, it has become evident that a stand-alone separation is the appropriate evolution for the business.
Therefore, this separation will mark Western Digital’s shift toward exclusive business in the HDD sector. On the other hand, SanDisk will continue to offer SSDs, incorporating the latest technology into its storage.
Currently, the company is not doing so well in terms of sales. Its revenue dropped a staggering 26% last quarter in both storage drive and flash memory sales. The company also expanded its reach in other sectors to make a comeback, including expanding storage options for handhelds and next-generation consoles.
Other well-known competitors like Crucial, Seagate, and Corsair have recently launched storage drives with the latest PCIe Gen 5 speeds. Western Digital, sadly, has nothing to offer in the high-speed storage solution segment.
However, things might change for the best with a new competitor next year. There are no specifics on when Western Digital will split its company into two independent sectors, but it is expected to do so in the second half of next year.
Malik Usman is student of Computer Science focused on using his knowledge to produce detailed and informative articles covering the latest findings from the tech industry. His expertise allows him to cover subjects like processors, graphics cards, and more. In addition to the latest hardware, Malik can be found writing about the gaming industry from time to time. He is fond of games like God of War, and his work has been mentioned on websites like Whatculture, VG247, IGN, and Eurogamer.