This week, Taiwan’s Foxconn, the world’s largest electronics contract manufacturer, announced to offer up to $27 billion for Toshiba’s computer-chip business. The bid surpassed offers from other interested parties.
Toshiba’s chip business makes flash-memory chips for smartphones and computer servers, and the company has said it plans to sell up to 100% of the business. By selling its chip business, the company hopes to cash out assets to remain alive, and recover from the hit from the huge cost overruns at US nuclear-reactor construction projects.
“Analysts have estimated the business’s fair value at between ¥1.5 trillion and ¥2 trillion. One person familiar with the matter said the next-highest bidder after Foxconn offered about ¥2 trillion when initial bids for the business were accepted in late March,” a report stated.
Japanese government hopes to see a Japanese firm or a joint US-Japan team to take the bid for Toshiba, so the latest bid could put the authorities in a difficult spot.
The announcement for Foxconn comes after its $3.5 billion acquisition of Sharp. If the Foxconn successfully acquires Toshiba’s business, by owning both screen business from Sharp and NAND business from Toshiba, the company could have a strong position for the future negation with Apple.