Press release

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

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Toshiba 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.