This strategic move is aimed at bringing a sense of finality to its bid of divesting its chip business following months of delays.

Toshiba Corp has stated it will be building a new semiconductor plant in Iwate, northern Japan, even as it makes efforts to sell its memory chip business to raise funds.

Significantly, it will weigh its options to decide whether joint venture partner, SanDisk, which is owned by Western Digital Corp, will be allowed to invest in this lucrative project, said the company in a statement.

Earlier, Western Digital had offered to drop out of a group bidding for Toshiba’s flash memory chip business following stalled negotiations, said sources familiar with the matter at hand, on Tuesday. Instead Western Digital is seeking to strengthen its position in their joint venture, said sources.