Fujitsu is in talks over the sale of its hard disk drive business to Western Digital.

Fujitsu's HDD unit is ranked sixth in the world, while Western Digital comes second behind Seagate Technology. Under the deal Fujitsu would sell all of its plants in Japan, Thailand, and the Philippines for between $660 million and $944 million.

According to Japan's Nikkei news service, the deal would be one of the largest business unit sell-offs for a Japanese electronics company. Fujitsu's hard disk drive business has been posting losses, and there was talk of major restructuring for the division anyway. The sector has suffered from tough competition, and is now facing a threat from solid state drives.

The deal would be ironed out by the end of the year. X

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