Toshiba and SanDisk have been in a number of joint ventures for some time now, but it looks like the two companies are now starting what could be a more drawn out break-up process, with SanDisk announcing today that it’s selling 30% of its manufacturing capacity outright to Toshiba in a $1 billion deal. For the time being at least, the two will remain 50/50 partners in the remaining 70% of the companies’ joint factories,
though Toshiba will apparently get 65% of the production capacity at those factories. As MarketWatch points out, this latest move comes just a month after SanDisk rejected a $6 billion buyout offer from Samsung, and some analysts are now speculating that Toshiba’s deal will only make the company a more attractive target for Samsung. Nothing is expected to get wrapped up before August of 2009, however, which is when Samsung’s current royalty arrangement with SanDisk is due to expire.