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The closely watched breakup of Western Digital is approaching a critical juncture.

At an investor day that ended in the early hours of February 13, Western Digital announced that the spinoff of its Flash Memory Business is Expected to be completed on February 22, 2025 Beijing Time The Company expects to complete the spinoff of its flash memory business on February 22, 2025 Beijing time (February 21, 2025 Eastern Time). After the separation, Western Digital will focus on the hard disk drive (HDD) business and continue to use the Western Digital brand. The original flash memory business will be independent "Sandisk Corporation" (Sandisk), with current Western Digital CEO David Goeckeler as CEO of the new Sandisk company.

The separation aims to increase market valuation, optimize resource allocation and better meet customer needs by operating two core business units independently. According to industry analysts, Western Digital's NAND and SSD businesses could be valued at $10 billion to $22 billion independently, and the combined value of the two companies after the separation could be at least $30 billion and possibly more than $40 billion.

Western Digital's HDD business will continue to be led by Irving Tan, executive vice president of Worldwide Operations, who will serve as CEO of the new Western Digital company. Tan emphasized that Western Digital, with its deep expertise in HDD technology and innovation, has been a trusted partner for hyperscale data center operators, cloud service providers and Oems worldwide. The company expects HDD Exabyte (EB) shipments to grow at a compound annual growth rate of 23% from 2024 to 2028.

In addition, Western Digital is accelerating the development of thermal assisted Magnetic recording (HAMR) technology, and plans to launch the first 36TB CMR version and 44TB UltraSMR version products in 2026. This technological breakthrough will propel the storage industry to a new milestone, helping data centers and cloud storage providers cope with the growing demand for data storage.

Sandisk will focus on NAND flash and solid-state drives (SSDS) to develop new and disruptive storage technologies. Goeckeler said Sandisk will drive the future of the flash industry with its leading flash portfolio and differentiated semiconductor innovation engine.

The split between Western Digital and Sandisk is not only an important step in the company's strategic transformation, but also heralds a major change in the storage landscape. As the two companies focus on their core businesses, the storage market will usher in new opportunities and challenges.

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