Printer Friendly

WESTERN DIGITAL SIGNS LETTER OF INTENT TO SELL WAFER FAB TO MOTOROLA INC.; CLOSING TARGETED BY YEAR-END

 IRVINE, Calif., Oct. 25 /PRNewswire/ -- Western Digital Corp. (NYSE: WDC) announced today that it has signed a letter of intent with the Semiconductor Products Sector of Motorola Inc. for the sale of Western Digital's Irvine silicon wafer fabrication facility and related assets for between $112 million to $115 million in cash plus assumption by Motorola of equipment leases associated with the facility and certain other considerations. The transaction is targeted for completion by the end of December.
 Earlier this month, Western Digital and Rockwell International terminated their prior negotiations relating to the sale of the facility.
 The proposed transaction with Motorola will involve a supply contract pursuant to which Western Digital will obtain a significant portion of its silicon wafer requirements for its disk drive and microcomputer products businesses from Motorola for at least two years following the sale. The proposed sale is subject to a number of conditions, including negotiation of definitive agreements, as well as receipt of necessary governmental and private party approvals.
 Charles A. Haggerty, chairman, president and chief executive officer of Western Digital, stated: "The agreement with Motorola will provide Western Digital with a supply partner who is one of the best in the industry in quality and customer service. Once completed, the transaction will continue to fulfill one of our principal goals over the last year -- meaningful reduction of bank debt -- as well as facilitate our transition to a variable cost structure from a high fixed cost structure. This deal signals our exit only from the manufacture of semiconductors, not from our Microcomputer Products businesses. Western Digital will retain and continue to leverage its semiconductor design expertise across existing product lines and into new areas."
 Travis White, executive vice president and general manager of Western Digital's Microcomputer Products business, said: "The semiconductor wafer supply contract is a critical aspect of this transaction. We believe that Motorola brings some of the semiconductor industry's leading technology, manufacturing, and process development expertise to this relationship. We look forward to an expanding long- term relationship with Motorola as our primary semiconductor partner."
 Headquartered in Irvine, Western Digital Corp. is a recognized leader in the design and manufacture of hard disk drives, integrated circuits, and graphics controller board-level products. The company markets these products to leading systems manufacturers and selected resellers under the Western Digital, Caviar(TM), Paradise, RocketCHIP(TM), and TakeCharge(TM) brand names. The company was founded in 1970 and has long been noted for its storage and graphics controller expertise and end-market systems-level design knowledge.
 Western Digital and Paradise are registered trademarks of Western Digital Corp. Caviar, RocketCHIP, TakeCharge, CacheFlow2 and Fit Lab are trademarks of Western Digital Corp. All other marks mentioned herein belong to other companies.
 -0- 10/25/93
 /CONTACT: Robert J. Blair, 212-867-4490/
 (WDC)


CO: Western Digital Corp.; Motorola Inc. ST: California IN: CPR SU: TNM

MF-EH -- LA031 -- 6377 10/25/93 13:32 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 25, 1993
Words:482
Previous Article:ORIOLE HOMES REPORTS THIRD QUARTER RESULTS; COMPANY SEES TRENDS POINTING TO FURTHER IMPROVEMENTS IN OPERATING RESULTS
Next Article:THE TAIWAN FUND, INC. ANNOUNCES EARNINGS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters