Samsung Sells HDD Production to Seagate – Launches SSD Venture
The storage giant Seagate is taking over Samsung’s hard drive division and initiates a partnership with the Korean company in current SSD, hybrid storage and flash memory technology.
The rumor that Samsung withdraws from the hard drive market were just confirmed in an official press release stating that Seagate takes over the operations in exchange for a paltry sum of 1.375 billion dollars. Half of it is paid in cash and half in equity, meaning that Samsung has become a partner in Seagate with a share of 9.6 percent.
Samsung, the world’s largest manufacturers of flash memory, also initiates a close collaboration with Seagate in existing solid state drive, hybrid storage and other storage solutions in which memory chips are used. Meanwhile, Seagate delivers mechanical hard drives to Samsung computers.
With Samsung out of the game, this leaves only three major players in the hard drive industry: Seagate, Western Digital and Toshiba. Other hard drive manufacturers have passed the same fate: Hitachi Storage, which was acquired by Western Digital in the beginning of the year, and Maxtor, which became a part of Seagate five years ago.