22.3 C
New York
Friday, May 26, 2017
Home Tech Apple may bid for Toshiba chips division

Apple may bid for Toshiba chips division

8


SAN FRANCISCO — Apple is considering teaming with supplier Foxconn to bid for struggling Toshiba’s semiconductor business, Japanese broadcaster NHK reported.

The Silicon Valley company might chip in several billion dollars as part of one plan that would give it a stake of more than 20% and allow Toshiba to maintain a partial holding, NHK said.

Foxconn, the Taiwan-based components supplier, has offered as much as $27 billion, according to the Wall Street Journal. Toshiba spokeswoman Kaori Hiraki declined to comment.

Under another scenario, Apple would partner with Japanese telecommunications giant SoftBank Group or Taiwan-based Hon Hai Precision Industry, the world’s largest electronics contract manufacturer, according to other reports.

Apple was not immediately available for comment.

Toshiba, based in Tokyo, is selling a majority stake in its vaunted computer-chip business to stem a river of red ink.

The 142-year-old company — a pioneer in flash memory technology and portable computers — faces a shaky future after losing a jaw-dropping $4.8 billion over the first nine months of its fiscal year and warning losses could balloon to $9.2 billion for the full year. The biggest culprit: The bankruptcy filing of its U.S. nuclear unit, Westinghouse Electric, last month after delays and billions of dollars in cost over-runs in building U.S. reactors.

Shares in Toshiba slid as much as 8% Friday.

Follow USA TODAY’s San Francisco Bureau Chief Jon Swartz @jswartz on Twitter.

Read or Share this story: http://usat.ly/2pBeFmm



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here