It was reported on Monday when Foxconn chairman Terry Gou said that Apple and Amazon will join us to bid on Toshiba’s semiconductor business. In an interview with the newspaper Gou said, it was ambiguous initially whether it would be a direct investment in semiconductor unit or financing for the deal.
Taiwan’s company Foxconn formally known as Hon Hai has partnered with its Japanese unit Sharp Corp in the bid. However, representatives from Apple and Amazon were not readily available to comment on this.
Toshiba is now selling its unit of semiconductor business which is the world’s second largest NAND chip maker. Toshiba is trying to cover the billions of dollars that incurred huge loss in Toshiba’s Nuclear Unit. Bloomberg reported back in March that Toshiba has filed Nuclear Unit for Bankruptcy.
Toshiba is not depending on this unit to be sold and cover its losses, Toshiba has valued its semiconductor business minimum $18 billion.
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Interesting thing is, Japanese government has declared that they will block any deal that could be a risk of transferring key chip technology out of the country. This might create fears among bidders or let them make partnerships with Japanese companies. Taiwan’s Foxconn already did that by partnering Japanese Sharp Corp unit on its bid.
Now it will be interesting to hear what Apple and Amazon has to say about it, what plans they have to acquire this unit, Toshiba’s semiconductor technology is no doubt a great asset for any tech company which could generate more business in the future.
As Foxconn already made a statement that Apple and Amazon are joining their bid and backing them up to win the business, it looks Foxconn is more likely to win this bid by forming this syndicate. Other players on the bid are Google and Broadcom.