Toshiba wrangles with Western Digital over chips unit sale

losing Japanese electronics company Toshiba is sparring with its U.S. joint venture partner Western Digital over the planned sale of Toshiba's computer-chip business. Tokyo-based Toshiba Corp. needs cash from such a sale to shore up its finances after it suffered massive losses in its nuclear...

losing Japanese electronics company Toshiba is sparring with its U.S. joint venture partner Western Digital over the planned sale of Toshiba's computer-chip business.

Tokyo-based Toshiba Corp. needs cash from such a sale to shore up its finances after it suffered massive losses in its nuclear power division.

Toshiba warned Western Digital to stop interfering, according to letters seen Tuesday by The Associated Press. The letters from the company's lawyers, dated May 3, accused Western Digital of "improper" interference.

Western Digital bought SanDisk, Toshiba's longtime partner in making flash memory chips, last year. It has argued the sale might violate terms of the joint venture with Toshiba, according to the letters.

Such sales can be sensitive because they involve the transfer of technology.

Calls to Western Digital in Asia went unanswered.

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