Chinese companies are continuing to make moves within the American tech sector, and the most recent target is Western Digital Corp. (NASDAQ: WDC). In a move that gave shares a much needed bump from a recent 52-week low, the company announced Wednesday that it has entered into an agreement under which a subsidiary of China’s Unisplendour will make a $3.775 billion equity investment in Western Digital. Under the terms of the investment, Unis has agreed to purchase newly issued Western Digital common stock at a price of $92.50 per share.

This transaction is still subject to certain regulatory approvals.

Micron Technology Inc. (NASDAQ: MU) was targeted by Unigroup back in July. However, Micron turned down the takeover bid, also considering the disapproval of the U.S. regulatory committee. The committee disapproved of this deal, given that the chips used in some U.S. weapons systems were produced by Micron and that this deal could pose a threat to national security.

After the transaction on the new deal is closed, Unis will hold roughly 15% of Western Digital’s issued and outstanding shares. Also Unis will have the right to nominate one representative to the Western Digital board of directors. However, it will be subject to a five-year position standstill and voting restrictions. Should Unis’ ownership fall below 10%, it will lose board representative rights.

The proceeds from this will go directly to Western Digital’s balance sheet, providing financial flexibility for pursuing long-term strategic growth initiatives.

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Steve Milligan, president and CEO of Western Digital, said:

The equity investment by Unis will help facilitate our growth as we look to capitalize on the many opportunities and changes within the global storage industry. This investment reflects Unis’ strong support for Western Digital’s value-creation efforts.

Weiguo Zhao, chairman of Tsinghua Unigroup and Unisplendour, also commented:

We are excited to establish a relationship with Western Digital, a leading company in the storage industry with a capable and talented management team and workforce. We believe this long-term investment will serve as a constructive collaboration model for Chinese and U.S. companies to work together for success.

Considering this deal, parallels can be drawn with other rival companies in the space. Seagate Technology PLC (NASDAQ: STX) is a direct competitor with Western Digital in storage, and its already does a fair amount of its dealing with Samsung, which also has a sizable holding in Seagate.

Shares of Western Digital were up over 16% to $80.69 at one point on Wednesday, within its 52-week trading range of $67.87 to $114.69. The stock has a consensus analyst price target of $98.95.

Seagate shares were up 6% in the afternoon, at $44.29 in its 52-week trading range of $41.58 to $69.40. The consensus analyst price target is $54.60.

Shares of Micron were up 3.9% to $14.94. The 52-week range is $13.50 to $36.59, and the consensus price target is $25.42.

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