In the coming weeks, Toshiba will unveil a final decision concerning selling a majority stake in its lucrative memory business. Bloomberg reported this morning that iPhone manufacturer Foxconn’s preliminary bid for Toshiba’s semiconductor unit is valued at a whopping $26.93 billion. According to Bloomberg’s sources, that amount is in part to force negotiations, using a bid that’s too high to ignore.
Although Toshiba saw strong overall results from its HDD/SSD business in 2016, it’s spinning off the lucrative NAND flash unit into a separate company. It’s a last-ditch effort to plug a gap after the firm reported a heavy one-off $6.3 billion loss in December 2016, prompting its chairman to resign.
Korean Herald cited yesterday’s report in Yomiuri Shimbun Daily claiming that Apple, Amazon and Google are engaged in a bidding war to acquire the Japanese giant’s NAND flash unit. A very diverse conglomerate, Toshiba is Apple’s top supplier of memory chips for iOS devices and files as the second-largest flash chip maker in the world after Samsung Electronics.
Aside from other firms, companies like storage maker Western Digital, iPhone manufacturer Foxconn and Apple mobile chip maker Taiwan Semiconductor Manufacturing Company (TSMC) have all been named as potential bidders seeking a stake in Toshiba’s memory business.
According to a new report in the Chinese-language Liberty Times, quoted by DigiTimes, Foxconn and TSMC are joining forces in an attempt to acquire a majority stake in Toshiba’s NAND flash business. A successful bid by the two Apple suppliers may pose a great challenge to Samsung Electronics’ leadership in the flash memory market.
According to DigiTimes, Apple chip maker Taiwan Semiconductor Manufacturing Company (TSMC) is also interested in acquiring a stake in Japanese giant Toshiba’s memory business. The semiconductor foundry has been looking to expand into the lucrative 3D NAND memory sector.
Apple’s top supplier of memory chips, Toshiba is looking to spin off its flash unit into a separate company after reporting a massive $6.3 billion loss, with the split to become effective on April 1, 2017.
Firms like storage maker Western Digital and iPhone manufacturer Foxconn are among the potential bidders seeking a stake in Toshiba’s memory business, too.
Contract manufacturer Foxconn Technology Group, which assembles Apple’s iPhones and other companies’ products, is “very serious” about bidding for Toshiba’s memory chip business. Toshiba is currently Apple’s top supplier of flash memory chips. Foxconn’s founder and chairman Terry Gou said the firm cannot afford not having this technology.
Toshiba recently moved to sell some or all of its memory chip business after reporting a massive $6.3 billion loss. According to Bloomberg, Gou was present at an event in southern China to open a new $9 billion display plant.
DigiTimes estimated this week that flash memory chips for smartphones will remain in high demand throughout 2017 because supply shortages are reportedly “worse than expected” as chip makers are currently transitioning from older 2D NAND to newer 3D NAND technology.
According to a report Friday in The Korea Herald newspaper, citing Mirae Asset Daewoo Securities analysts, Toshiba may spin off of its lucrative NAND flash unit and sell the stake to Western Digital, narrowing the technology and market share gap with its bigger rival Samsung Electronics.
If purported iPhone 6 schematics that leaked out of China Thursday are anything to go by, there may be truth to the rumor that the next iPhone(s) will double storage capacity by introducing a new model with 128 gigabytes of NAND flash storage.
The rumor first appeared two months ago, suggesting that Apple would keep the 128GB option exclusive to the 5.5-inch iPhone 6 model along with other premium features (and possibly a premium pricing).
This time around, there’s some hard (dubious?) evidence to back up the claim…
Apple’s key components provider Samsung which supplies, among other items, Retina panels for the new iPad, agreed along with other defendants to settle a price fixing class-action lawsuit for a whopping $1.12 billion.
Samsung has agreed to pay $240 million, AU Optronics will pony up $170 million, Toshiba will pay only $21 million and LG Display will settle for $380 million in damages.
This settlement – the largest consumer class-action price-fixing settlement ever – is in addition to previous settlements from ten manufacturers and prison terms for some executives, The Wall Street Journal reported…