Dell, Toshiba sign components pact

Dell, Toshiba sign components pact

Toshiba has signed a deal to supply Dell with components on a worldwide basis. Initially due to run for three years, the deal has a potential value during that period of $US5 billion.

Toshiba has been supplying Dell with multiple components for several years, according to Rob Taylor, vice president of Toshiba's computing segment. What's different about the new arrangement is that both companies will commit to ensuring their product road maps better align with each other, he added.

"We can give feedback to Toshiba since we deal directly with our customers," which may help show Toshiba where to focus some of its research and development efforts, said a Dell spokesperson.

At the same time, through its closer relationship with Toshiba, Dell will have a better sense about advanced technologies on the horizon, such as polysilicon LCDs and how to create products to accommodate such technologies, Reid said. The deal will give Dell a "leg up" on gaining access to future technologies, he added.

The kinds of components covered by the deal will include Toshiba's DRAM, SRAM and static memory, as well as its LCDs and storage products such as DVD drives and hard-disk drives.

Over time, Dell and Toshiba intend to broaden the agreement to add in other Toshiba products.

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