Western Digital completes spin-off of flash memory business, SanDisk to operate independently

On February 24, Western Digital announced that it had completed the spin-off plan of its flash memory business, and the newly established SanDisk will operate independently. Former Western Digital CEO David Goeckeler will serve as SanDisk CEO, and Western Digital will once again focus on the mechanical hard disk HDD business, with Irving Tan as the new CEO. In 2016, Western Digital acquired SanDisk for US$19 billion and integrated the flash memory and HDD businesses in 2020. However, the storage market was sluggish in 2022 and Western Digital's performance declined. For this reason, Elliott, the largest shareholder, suggested that the flash memory business be independent to improve the performance of the hard disk and flash memory businesses. In October 2023, Western Digital's board of directors approved the spin-off plan to separate the hard disk and flash memory businesses into two listed companies. Before the spin-off, Western Digital was the world's fifth largest NAND Flash manufacturer. In the second quarter of fiscal year 2025, Western Digital achieved revenue of US$4.285 billion, a year-on-year increase of 41%, and net profit of US$594 million.