Bids for Toshiba chips start at $18 billion, but will Foxconn lead the charge?
Toshiba is putting its semiconductor unit up for grabs and has attracted prominent bids from Taiwan’s Foxconn, South Korea Hynix and Singapore’s Broadcom. An anonymous source claims that Foxconn, also known as Hon Hai Precision Industry Co., may put in a bid at up to $27 billion, Bloomberg reports.
While the minimum bid so far is reported to be at $18 billion, Foxconn may be incentivizing the Japanese government to negotiate with the manufacturer on the deal. The company purchased display maker Sharp last year for under $4 billion.
Meanwhile, as Japanese acquirers have so far stayed silent on whether they would put in a bid, Toshiba may decide to open a round of hougacho-hoshiki or a financing pot with contributions from many domestic companies. A spokesperson for Fujifilm stated that it is interested, but would like more information on the investment framework.
While Bloomberg reports that Foxconn could angle a joint effort with SK Hynix for the IC unit, there’s little to no indication that Taiwan Semiconductor Manufacturing Company is involved in that bid as previously rumored.
The Japanese government is concerned that jobs will be offshored to China following the acquisition, a stipulation denied by foreign suitors.