Broadcom and Western Digital in the lead for Toshiba chip business
Toshiba plans on announcing the winning tender for its semiconductor business on June 15, Reuters reports.
Broadcom has linked with the Silver Lake tech venture capital fund for one of the alliances in the auction. The other is formed by Toshiba plant co-operator Western Digital and Japanese investors backed by the government. It seems that major contenders Google and even Apple are out of the race at this point for an $18 billion business.
Western Digital, which jointly runs Toshiba’s main NAND chip plant, has pressured the company into surrendering the business to it, saying that an outside sale would be a breach of contract. Toshiba has deflected those claims.
Western Digital is offering about ¥2 billion while Broadcom is giving out a more appealing ¥2.2 billion bid (approx. $20 billion). Groups with an outside chance at this point are Bain Capital, SK Hynix and Foxconn.
Toshiba is selling the world’s second-largest NAND flash memory chip production operation to patch up the bankruptcy of its US-based nuclear unit, Westinghouse Electric.