Some of the world’s largest tech companies are reportedly in the running to snap up Toshiba’s memory chip business, with Google, Amazon and Apple among those understood to be bidding for stock of the business.
The bidding comes as the embattled Japanese technology company spins off its memory chip business, according to the Yomiuri Shimbun’s Japan News, with bidding on the business expected to be fierce, given the involvement of Apple, Google and Amazon.
Other “major” semiconductor manufacturers are also involved in the bidding process, the Japanese media outlet reported.
About 10 potential buyers are thought to be lining up for a chance to take on Toshiba’s memory chip business, according to previous reports, with Western Digital, Foxconn Technology Group and Kingston Technology among those vying for a stake in the business.
In addition to a number of Toshiba’s fellow semiconductor manufacturers, several investment funds are also among the organisations interested in potentially acquiring the embattled Japanese tech company’s memory chip division, Bloomberg reported on 17 March.
Bloomberg reported, at the time, that the bids could range from between 700 billion Yen ($8.2 billion) to 1.8 trillion yen ($21.2 billion), according to sources familiar with the matter.
The Japan News suggests that Toshiba hopes to sell the spun-off memory chip business for at least 1.5 trillion Yen, which equates to more than $17.6 billion.
In January, the company revealed it would sell a portion of its flash memory business, including the SSD business of the Storage & Electronic Device Solutions Division, to Western Digital.
Later, it was reported that the company may sell off more of its flash memory spin-off to cover losses incurred by a nuclear plant construction business, Westinghouse Electric Company (WEC) in the US, that it bought in 2015.
The fresh list of potential buyers comes after Toshiba shareholders agreed to split off the company’s memory chip business in a bid to bolster its bottom line following a massive write-down caused by cost overruns of WEC.
Just last week, Toshiba announced that WEC and its subsidiaries had filed for Chapter 11 bankruptcy proceedings in the US, in a bid to reorganise the associated businesses.
The resulting fallout from the write-down of WEC has seen Toshiba request, and be granted, a number of extensions to its third quarter securities report submission deadline.
With its memory chip business up for grabs, Toshiba could be in for a big windfall. According to Bloomberg, the semiconductor business made up about 25 per cent of the company’s revenue in the latest financial year.