Western Digital Comments on Production Status of its Joint Venture Flash Memory Manufacturing Facilities

Rhea-AI Summary

Western Digital Corp. (NASDAQ: WDC) reported contamination issues affecting production at its Yokkaichi and Kitakami flash fabrication facilities. This incident is projected to result in a loss of at least 6.5 exabytes of flash availability. The company is collaborating with its joint venture partner, Kioxia, to rectify the situation and restore normal operations promptly. Additionally, the press release includes various forward-looking statements, highlighting potential risks related to market conditions, competitive pressures, and operational disruptions.

Positive

• Collaboration with Kioxia to resolve contamination issues may expedite restoration of production.
• -

Negative

• Contamination issues are leading to a significant loss of 6.5 exabytes in flash availability, potentially impacting revenue.
• Risks from operational disruptions could affect future performance.

SAN JOSE, Calif.--(BUSINESS WIRE)-- Western Digital Corp. (Nasdaq: WDC) today announced that contamination of certain material used in its manufacturing processes has occurred and is affecting production operations at both its Yokkaichi and Kitakami joint venture, flash fabrication facilities.

Western Digital’s current assessment of the impact is a reduction of its flash availability of at least 6.5 exabytes. The company is working closely with its joint venture partner, Kioxia, to implement necessary measures that will restore the facilities to normal operational status as quickly as possible.

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. Our data-centric solutions are comprised of the Western Digital®, G-Technology™, SanDisk®, and WD® brands.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding the expected amount of reduced flash availability and timing and ability to resume normal operations. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including: future responses to and effects of the COVID-19 pandemic; volatility in global economic conditions; impact of business and market conditions; impact of competitive products and pricing; our development and introduction of products based on new technologies and expansion into new data storage markets; risks associated with cost saving initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and our strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; our substantial level of debt and other financial obligations; changes to our relationships with key customers; disruptions in operations from cyberattacks or other system security risks; actions by competitors; risks associated with compliance with changing legal and regulatory requirements and the outcome of legal proceedings; and other risks and uncertainties listed in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Company’s Form 10-K filed with the SEC on August 27, 2021, 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 the Company undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law.

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 US and/or other countries

View source version on businesswire.com: https://www.businesswire.com/news/home/20220209006166/en/

Western Digital Corp.

Investor Contact:

T. Peter Andrew

949.672.9655

peter.andrew@wdc.com

investor@wdc.com

Media Contact:

Robin Schultz

408.573.5043

robin.schultz@wdc.com

Source: Western Digital Corp.

FAQ

What caused the production issues at Western Digital's facilities?

Contamination of certain materials used in manufacturing processes has caused production issues.

How much flash availability will be affected by Western Digital's contamination incident?

The contamination is expected to reduce flash availability by at least 6.5 exabytes.

What is Western Digital doing to address the contamination issue?

Western Digital is working closely with its joint venture partner, Kioxia, to restore normal operations as quickly as possible.

What are the potential risks mentioned in Western Digital's press release?

The press release mentions risks related to market conditions, operational disruptions, and competitive pressures.

What is the stock symbol for Western Digital?

The stock symbol for Western Digital is WDC.