Apple and Dell Join Foxconn in Its Bid for Toshiba’s Chip Unit

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What’s the story behind the bid for Toshiba’s profitable chip unit?

Taiwanese electronics contract manufacturer Foxconn and its Japanese counterpart Sharp, told Reuters earlier today that Apple and Dell joined its bid for the Toshiba chip unit. Kingston Technology is also part of the Foxconn-led bid for the business. Foxconn would have a combined stake of 40% or less. It is also reported that there are talks with Cisco, Google and Microsoft. Amazon is also reported to be close to signing on.

Western Digital, which operates a memory chip plant with Toshiba, is also a bidder. Western Digital is also involved in a legal battle with Toshiba, since WD claims that Toshiba’s consideration of bidders violated the terms of the WD-Toshiba joint venture.

Toshiba is said to favor American chipmaker Broadcom and it’s partner Silver Lake, an American equity firm. The Broadcom-Silver Lake coalition is offering Toshiba 2.2 trillion yen, which makes the Foxconn offer unlikely to succeed, especially given Foxconn’s close ties to China, and the Japanese government has vowed to stop business deals that would risk the movement of technology out of the country.

Nikhil Sridhar seeks out writers who bring important new perspectives to Merion West. He studies biology and political science at Duke University and is interested in American politics.

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