Western Digital and SanDisk's split plan has attracted significant industry attention. This strategic adjustment was first announced on October 30, 2023, with the goal of splitting Western Digital's hard disk drive (HDD) business and flash memory business (including NAND flash and SSD) into two independent publicly traded companies. However, due to the complexity of the split process, the original plan was not implemented on schedule and was eventually completed on February 21, 2025.

I. Split Background: Dual Transformation in the Storage Industry

1. HDD and SSD Technologies

HDD and SSD are the two core technologies in the data storage field. HDD relies on mechanical arms and rotating disks to read and write data, offering the advantages of low cost and high capacity, but with slower speed and lower durability. In contrast, SSDs, based on flash memory technology, feature high speed, low power consumption, and strong shock resistance, though at a higher cost. With technological advancements, SSDs' advantages in performance and pricing have become increasingly evident, driving rapid market demand growth.

2. Integration History of Western Digital and SanDisk

In 2016, Western Digital acquired SanDisk for $19 billion, aiming to integrate HDD and SSD businesses to create a comprehensive storage solution. However, as the market environment evolved, the differences in technology routes, customer needs, and competitive landscapes between the two businesses became more apparent, and the anticipated synergies from integration were not fully realized.

3. Industry Competition and Market Pressure

The storage industry is undergoing rapid transformation, with the rise of cloud computing, artificial intelligence, and big data driving the demand for high-performance storage. Meanwhile, competitors such as Samsung, Intel, and Micron have been aggressively expanding in the SSD market, while Seagate and others maintain a strong presence in the HDD market. Western Digital faced dual pressures and urgently needed to enhance its competitiveness through business separation.

II. Business Layout After the Split

After the split, Western Digital will continue to operate under the "Western Digital" brand, focusing on the HDD business. The company plans to enhance disk storage density and capacity through technological innovations, such as accelerating the development of Heat-Assisted Magnetic Recording (HAMR) technology. Western Digital expects that from 2024 to 2028, the exabyte (Exabyte) shipments of HDDs will grow at a compound annual growth rate of 23%. Additionally, Western Digital will continue to provide cost-effective storage solutions to global hyperscale data center operators, cloud service providers, and OEMs.

SanDisk, on the other hand, will operate independently, focusing on the NAND flash and SSD markets. The new company will continue to drive the research and development of flash memory technology and expand its market presence to meet the growing market demand. SanDisk also plans to introduce a new logo and website to highlight its independent brand identity. Moreover, its independent operation will enable SanDisk to more flexibly respond to market changes and seize unique growth opportunities.

III. Management Adjustments

The split is also accompanied by significant management changes. David Goeckeler, the current CEO of Western Digital, will take up the position of CEO at SanDisk, while Irving Tan, the Executive Vice President of Global Operations, will succeed as the CEO of Western Digital. These personnel changes are expected to inject new vitality into both companies, driving their continuous development in their respective fields.

IV. Impact and Future Outlook

The split is expected to have a profound impact on the storage industry landscape. According to analysts' estimates, the independent valuation of Western Digital's NAND and SSD businesses could range from $10 billion to $22 billion, with the total value of the two companies after the split reaching at least $30 billion, and potentially exceeding $40 billion. Moreover, through independent operations, Western Digital and SanDisk will be able to better leverage their respective technological strengths and drive the development of innovative technologies.

Looking at market trends, with the widespread adoption of generative AI and the surge in data storage demand, the market demand for both HDDs and SSDs is expected to continue growing. The independent development of Western Digital and SanDisk will enable them to focus more on their core businesses and meet the diverse needs of customers.

V. Conclusion

The split of Western Digital and SanDisk is not only an important step in corporate strategic adjustment but also a new starting point for the development of the storage industry. Through independent operations, the two companies will be able to delve deeper into their respective fields, drive technological innovation, and enhance market competitiveness. In the future, with the continuous development of HDD and SSD technologies, Western Digital and SanDisk are expected to maintain a leading position in the storage market.

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