Toshiba announced its plans to sell a much-coveted chip business to the higher bidder. This is an attempt to overcome some financial difficulties the company currently faces. To get a chance to access this type of technology, both Apple and Dell joined a consortium bidding led by Foxconn.
Toshiba Chip Business Values a Total of $18 Billion
There are other influential names that want to participate in this historical takeover. The founder of Foxconn, Terry Gou, announced a new entry on behalf of Kingston Technology, a producer of memory assets. There were chances for even Amazon.com to join this initiative yet the company turned the opportunity down in the end. Nonetheless, the Taiwanese company is currently persuading Cisco Systems and Alphabet to take part in this business situation.
On the other hand, there are no disclosed numbers to how much each party considered to invest. Nonetheless, the stakes are high in this game. Toshiba has put forward an $18 billion worth chip business. The Japanese tech giant is the second biggest producer of NAND chips in the world. The generated funds will be allocated toward covering the budget hole the nuclear unit Westinghouse Electric created to the company with its bankruptcy filing.
Japanese Government Doesn’t Indulge Foxconn Ties with China
On the other hand, Foxconn might lose the bidding game due to its ties with China. This is where the company manufactures most of its products. This situation might impair the negotiations as the Japanese government doesn’t want its main chip technology to leave the country.
On the other hand, Terry Gou defended his consortium by showing there is no Chinese capital involved in this business. He is going to use his Japanese unit Sharp to control a combined stake of up to 40% of the chip unit.
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