Western Digital (NASDAQ: WDC) has put Toshiba (TKO: 6502) in a tight spot. The company and its SanDisk subsidiaries have requested arbitration with the International Chamber of Commerce regarding Toshiba’s ongoing attempts to sell its NAND flash-memory units, which are operated as a joint venture between the two tech giants, accusing Toshiba of violating an existing agreement regarding the operation of the joint venture.
Toshiba is auctioning the division to raise funds needed to offset losses from its Westinghouse Electric nuclear unit, which filed for Chapter 11 bankruptcy in March. Several companies have already lined up bids with Toshiba, including Broadcom, Foxconn Technology and SK Hynix, with a winner expected to be announced by the end of June.
If Western Digital’s request for arbitration is granted, proceedings would take place in San Francisco and could reportedly last up to a year. Toshiba could end up in court if it sells the unit in the meantime, per Bloomberg.
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Check out more of our coverage of Toshiba’s auction process.
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