Apple and Foxconn to make joint bid on Toshiba chip unit?

Posted on Friday, Apr 14 2017 @ 12:00 CEST by Thomas De Maesschalck
Toshiba logo
Here's the latest part of the ongoing Toshiba saga. As you may know, the Japanese conglomerate is in deep trouble as an accounting scandal and the bankruptcy of its US-based Westinghouse nuclear division caused deep balance sheet wounds and turned the shareholder equity negative.

Toshiba is struggling to survive and is seeing itself forced to sell its crown jewels, which includes the NAND flash memory unit. There are a lot of potential bidders for the chip unit but a deal is complicated by anti-trust concerns as well as worries about critical technologies falling into the hands of overseas buyers.

Now Japanese public broadcast NHK reports Apple is one of the parties interested in Toshiba's chip business. The goal here is to supply a steady stream of memory for its mobile devices, and Apple is even considering a joint bid with Foxconn:
But Japanese government officials have expressed concerns about Toshiba selling critical technologies to overseas buyers. Sources say that in response, Apple would have Toshiba keep some shares so the Japanese and US firms combined, will have a majority stake.

Apple executives are also considering teaming up with Hon Hai Precision Industry, also known as Foxconn. The Taiwanese maker is trying to acquire about 30 percent of the stake, and call on Japanese firms to join them.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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