Foxconn Receives Apple And Amazon Backing In Bid For Toshiba’s Memory Chip Unit

Foxconn is attempting to acquire Toshiba's semiconductor business though it is not going at it alone. According to multiple reports, both Apple and Amazon have joined forces with Foxconn to grab a piece of the sale, with each company offering up an untold amount of financial backing to help push the deal through.

It is also said that Taiwan's Foxconn, also known as Hon Hai Precision, has partnered with Sharp in its bid. Foxconn acquired Sharp last year in a deal worth in the neighborhood of $3.5 billion.

Foxconn

"Foxconn can confirm that we have submitted a bid for Toshiba's chip business with a number of strategic partners," the company told Reuters. It is not willing to discuss specifics of the deal, including financials, but said it would provide details "at the appropriate time." We presume that to mean after a deal is actually in place, assuming one is reached with Toshiba.

The interest from Apple is not surprising. Foxconn is one of the main suppliers of Apple-brand products such as the iPhone. The two companies have a close relationship. By helping Foxconn to secure Toshiba's chip business, whether through a direct investment or in the form of financing, Apple could ultimately see lower costs on the manufacturing side.

While financial details are not yet known, it is said that Toshiba is valuing its chip business at $18 billion. Part of that lofty valuation is due to Toshiba's ties with China. Interestingly, the Japanese government has threatened to block any deal that Toshiba tries to consummate over fear of secretive chip technology finding its way out of the country.

Like Apple, Amazon is also a customer of Foxconn, which produces the company's Kindle tablet and Echo speaker products. Amazon is already known for its aggressive pricing on products, so it easy to see why the online retailer would be interested in joining Foxconn in its buyout bid.

Top and Thumbnail Image Source: Wikimedia Commons (Nadkachna)

Via:  Reuters
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