This photo taken in September 2017 shows a factory of Toshiba Memory Corp., the memory chip unit of Toshiba Corp., in Yokkaichi, Mie Prefecture, central Japan. (Kyodo)

TAIPEI (NNA/Kyodo) — Toshiba Memory Holdings Corp. will acquire the solid-state drive business of Taiwan’s Lite-On Technology Corp. for $165 million, developing another core segment to add to its flash memory unit.

Lite-On will transfer its SSD business, including its inventory, equipment, intellectual property, technology and personnel, by April 2020, according to a Lite-On statement released Friday. The acquisition will not include Lite-On’s SSD-making joint venture with Tsinghua Unigroup Co., according to local news site

Nobuo Hayasaka, chief technology officer of Toshiba Memory, welcomed the move. It meets “the projected growth in demand for SSDs in personal computers and data centers being driven by the increased use of cloud services,” he said in a separate statement released Friday.

Toshiba Memory expects growth in the market of SSDs using flash memory, its key product, fueled by demand for the replacement of hard-disk drives. The firm posted a net loss of 95.2 billion yen ($896 million) in the first quarter of the fiscal year through March 2020, due to sagging memory prices.

Lite-On has been restructuring its business portfolio to switch its focus to profitable sectors such as light emitting diode components, selling off mobile phone- and camera-related businesses in 2018.

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