$5 billion strategic alliance announced

Toshiba America Electronics Components has announced the Toshiba Corporation’s agreement to form a multi-billion dollar strategic alliance and
master purchase agreement with Dell.

Toshiba America Electronics Components has announced the Toshiba Corporation’s agreement to form a multi-billion dollar strategic alliance and master purchase agreement with Dell.

This strategic agreement supports development and supply of various components, including memory, liquid crystal displays and storage products to Dell on a global basis which is worth a potential $5 billion in components over the next three years.

Toshiba and Dell anticipate adding other products under the agreement, such as batteries and colour display tubes, as the relationship develops.

The agreement runs for an initial term of three years, renewable in one-year increments.

This strategic alliance is intended to create mutually beneficial opportunities for Dell and Toshiba’s respective products, and to create a long-term technology alliance.

Under the agreement, Dell and Toshiba will focus business initiatives, provide complementary expertise and create a more effective way to offer a broader selection of industry-leading products to Dell’s customers.

As a result, both companies anticipate realising time-to-market and time-to-volume benefits. Additions to quality improvement, flexibility and production/supply continuity benefits are also expected.