Apple and Dell join Foxconn to buy Toshiba’s Chip Business

Apple and Dell have joined hand with the world’s largest contract electronics manufacturer, Foxconn to bid for the chip unit of Toshiba Corp. The company’s CEO Terry Gou told reporters on Monday that Kingston Technology will also be a part of the bidding group with Amazon still on the fence about the decision.

Foxconn is also in talks with Microsoft Corp, Cisco Systems Inc, and Alphabet Inc to participate in the bid. It is currently not known as to what the individual companies will invest. Mr. Gou was visibly happy with the Apple’s decision as he said,” I can tell you Apple is in for sure”. He, however, declined to give other details about the bid but hinted that it was very close to the other bids.

Currently, Toshiba is facing bankruptcy at its US nuclear business Westinghouse Electric Corp and the company wants to sell the world’s largest producer of NAND chips. The money generated from the sale of its US unit will be in turn used to cover the cost overruns of its US nuclear business Westinghouse Electric Corp.

It is however very unlikely that Foxconn will be able to buy the unit as it has deep ties with China and the Japanese government is expected to block the deal as it doesn’t want its chip technology to be transferred out of the country.
Mr. Gou, on the other hand, is certain of striking the deal as he let the reporters know that the consortium which is led by Foxconn has no Chinese capital. He also looks fairly confident of buying the company and played down the Japanese government opposition to the deal.

Mr. Gou also said that Foxconn and its Japanese unit Sharp Corp would amount to just 40% of the stake and the rest will be held up Apple and the other companies which are still to be a part of the consortium. Toshiba is currently weighing its options and is looking for the highest bidder to nullify its loss in the Nuclear power plant. The news of a potential bid from US chipmaker Broadcom Ltd is also in the air however it is not confirmed by any of the parties involved.