New in OS X: Get MacRumors Push Notifications on your Mac

Resubscribe Now Close

Apple May Spend Several Billion Dollars to Obtain 'Substantial Stake' in Toshiba's Memory Chip Business

Apple may spend several billion dollars to obtain a "substantial stake" in Toshiba's memory chip business, according to Japanese public broadcaster NHK. Reuters cited NHK as saying Apple's stake would be greater than 20 percent.

Given concerns from Japanese government officials about Toshiba selling "critical technologies" to overseas buyers, Apple would reportedly have Toshiba keep some shares so that the company retains partial Japanese ownership.

Apple is also considering teaming up with its manufacturing partner Foxconn, which is trying to acquire about 30 percent of the stake, the report said.

Foxconn allegedly offered Toshiba up to 3 trillion Japanese yen ($30 billion) as a standalone bid, but a subsequent report said Toshiba would likely reject the bid due to Foxconn's ties with China, where it operates multiple factories.

Apple's other manufacturing partner TSMC has reportedly already withdrawn its bid, while other potential suitors are said to include technology giants Amazon and Google and rival memory chipmakers SK Hynix and Western Digital. Apple itself was named as a potential bidder by a separate source earlier this month.

Toshiba announced plans to sell its NAND flash memory business in January in order to raise funds to cover write-down costs associated with its U.S. nuclear subsidiary Westinghouse Electric, which filed for Chapter 11 bankruptcy protection in March. The company expects to face $9 billion in related charges.

Apple dual sources 32GB, 128GB, and 256GB flash storage from Toshiba and SK Hynix for the iPhone 7 and iPhone 7 Plus.

Toshiba, facing an uncertain future, is supposedly expected to select the winning bidder of its memory chip business by June.

Tag: Toshiba

Top Rated Comments

(View all)

1 day ago at 10:56 pm
Apple investing will help leviate any future supply constraints. Also won't be at the merci of other manufacturers.

Hope they are successful in pulling this deal off.
Rating: 6 Votes
1 day ago at 11:32 pm
I think it's for the best that Toshiba retain a good chunk and ownership. Apple needs the tight connection, but manufacturering is not really their thing. And Toshiba management is probably better than Apple management in that Apple is spread pretty thin already.
Rating: 6 Votes
1 day ago at 10:44 pm
This is a worthwhile investment. Even if they continue to ditch computers, they will benefit in thier idevices .
Rating: 4 Votes
18 hours ago at 05:43 am
There's just something about that logo…

Rating: 4 Votes
1 day ago at 10:45 pm
Own the vertical...

Or as much as possible!
Rating: 3 Votes
19 hours ago at 04:44 am

This is like buying the plastic factory to get cheaper Legos.

Sometimes it's just easier to negotiate a lower price and let the Lego company just make them.

Except, there are dozens of companies wanting to buy the same legos from this company, and owning a sizable chunk of it would guarantee Apple would have a better supply of legos to sell.
Rating: 2 Votes
1 day ago at 11:49 pm
Go For it Apple!! If it means getting an iPhone or iPad with 512GB or larger space (At a good price) then I support it!
Rating: 2 Votes
1 day ago at 11:55 pm
Even a sizeable minority stake in Toshiba's memory chip business, could certainly help Apple in their ability to secure large future memory chip orders, regardless of who will be the eventual successful bidder.
Rating: 2 Votes
19 hours ago at 04:15 am

Will not lower cost of memory upgrades on their devices.

agreed, but the NAND market is constrained and this will give them more supply

Why Apple need to partner with Foxcon? Can Apple acquire it alone?

They could, but do Apple really want to get into Semiconductor manufacturing ? ..... it's a totally different game
Rating: 2 Votes
1 day ago at 12:06 am
Apple probably realize that they'll be trailing competitors like Samsung that produce their own core components from DRAM, flash memory, display technology, camera sensor, SoC, baseband radio, etc. and even their own state of the art fabs.
Rating: 1 Votes

[ Read All Comments ]