Press release

Toshiba Memory and Western Digital to Jointly Invest in Flash Manufacturing Facility in Kitakami, Japan

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Memory Corporation
and Western Digital Corp. (NASDAQ:WDC) have
finalized a formal agreement to jointly invest in the “K1” manufacturing
facility that Toshiba Memory is currently constructing in Kitakami,
Iwate Prefecture, Japan.

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K1 facility (under construction) (Photo: Business Wire)

K1 facility (under construction) (Photo: Business Wire)

The K1 facility will produce 3D flash memory to support growing demand
for storage in applications such as data centers, smartphones and
autonomous cars. Construction of the K1 facility is expected to be
completed in the fall of calendar 2019. The companies’ joint capital
investments in equipment for the K1 facility will enable initial
production output of 96-layer 3D flash memory beginning in calendar
2020, with meaningful output expected to begin later in the year.

Toshiba Memory and Western Digital will continue to cultivate and extend
their leadership in their respective memory businesses by actively
developing initiatives aimed at strengthening technology
competitiveness, advancing joint development of 3D flash memory, and
making capital investments according to market trends.

“We are determined to demonstrate Toshiba Memory’s leadership in the
market, including collaborating with Western Digital to actively execute
initiatives that will strengthen our mutual competitiveness,” said Yasuo
Naruke, President and CEO of Toshiba Memory. “We look forward to jointly
developing 3D flash memory and carrying out investments tailored to
promising market opportunities.”

“The agreement to jointly invest in the K1 facility marks the
continuation of our highly successful collaboration with Toshiba Memory,
which has fostered growth and innovation of NAND flash technology for
two decades,” said Steve Milligan, chief executive officer of Western
Digital. “Western Digital’s long-term investment strategy for the
Kitakami site reflects our ongoing commitment to drive flash technology
development and manufacturing along with Toshiba Memory. This expansion
positions us well to provide the industry’s most competitive flash
supply to meet long-term demand trends driven by the growing volume,
velocity, variety and value of data.”

About Toshiba Memory
Toshiba Memory Corporation, a world
leader in memory solutions, is dedicated to the development, production
and sales of flash memory and SSDs. In April 2017, Toshiba Memory was
spun off from Toshiba Corporation, the company that invented NAND flash
memory in 1987. Toshiba Memory pioneers cutting-edge memory solutions
and services that enrich people’s lives and expand society’s horizons.
The company’s innovative 3D flash memory technology, BiCS FLASH™, is
shaping the future of storage in high-density applications, including
advanced smartphones, PCs, SSDs, automotive and data centers. For more
information on Toshiba Memory, please visit

About Western Digital
Western Digital creates environments
for data to thrive. As a leader in data infrastructure, the company is
driving the innovation needed to help customers capture, preserve,
access and transform an ever-increasing diversity of data. Everywhere
data lives, from advanced data centers to mobile sensors to personal
devices, our industry-leading solutions deliver the possibilities of
data. Western Digital data-centric solutions are comprised of the
Western Digital®, G-Technology™, SanDisk® and WD® brands.

Forward-Looking Statements
This news release contains
certain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
concerning the NAND flash memory joint venture; the construction and
production schedule for the K1 facility; demand for flash memory;
technology advancements; product portfolio; and market positioning.
There are a number of risks and uncertainties that may cause these
forward-looking statements to be inaccurate including, among others:
uncertainties with respect to the NAND flash memory joint venture;
volatility in global economic conditions; business conditions and growth
in the storage ecosystem; impact of competitive products and pricing;
market acceptance and cost of commodity materials and specialized
product components; actions by competitors; unexpected advances in
competing technologies; the development and introduction of products
based on new technologies and expansion into new data storage markets;
risks associated with acquisitions, mergers and joint ventures;
difficulties or delays in manufacturing; the outcome of legal
proceedings; and other risks and uncertainties listed in Western
Digital’s filings with the Securities and Exchange Commission (the
“SEC”), including Western Digital’s Form 10-Q filed with the SEC on May
7, 2019, to which your attention is directed. You should not place undue
reliance on these forward-looking statements, which speak only as of the
date hereof, and neither Western Digital nor Toshiba Memory undertakes
any obligation to update these forward-looking statements to reflect
subsequent events or circumstances.

Western Digital, the Western Digital logo, G-Technology, SanDisk and WD
are registered trademarks or trademarks of Western Digital Corporation
or its affiliates in the U.S. and/or other countries. All other marks
are the property of their respective owners.