Early in March, Apple suppliers Foxconn and Taiwan Semiconductor Manufacturing Company announced their intention to bid for a stake in Toshiba's memory chip unit, which the company has put up for sale in an effort to offset a nearly $6 billion loss related to its overseas nuclear division. TSMC eventually dropped out of the race, leaving Hon Hai (Foxconn) as the highest bidder at nearly 3 trillion yen, or $27 billion.

Today, people familiar with the sale speaking to Bloomberg said that Toshiba is expected to reject Foxconn's lofty bid, mainly because of likely opposition from both the Japanese and American governments if Foxconn were to win Toshiba's memory chip business. Taiwan-based Foxconn has deep ties with China due to its numerous, large iPhone production facilities being located in the country, and those ties are expected to sit unfavorably with Japanese officials watching the bids on Toshiba's memory chip unit.

toshiba
According to insiders, Toshiba sees a sale to Foxconn as an inevitable drag through regulatory approvals and delays, and is now willing to give "serious consideration" to lower bids.

Taiwan’s Hon Hai, which has indicated its willingness to pay as much as 3 trillion yen ($27 billion) for the chip unit, would face resistance because of its ties to China, said the people, asking not to be identified because the matter is private. That could drag out regulatory approvals and delay badly needed cash payments to Toshiba, raising the risks of such a deal, the people said. Hon Hai, the primary iPhone assembler for Apple Inc., has most of its factories in mainland China.

Next in line is said to be a potential offer of 2 trillion yen made by Broadcom, but current bids are non-binding and could change at any time, with the next round of bidding coming in the middle of May. The Japanese government is said to be "keeping a close eye on the process" and is expected to protect its interests in any sale that occurs with Toshiba.

On Tuesday, two senior officials, Chief Cabinet Secretary Yoshihide Suga and Industry Minister Hiroshige Seko, said Japan would protect its interests in any sale. “We are keeping a close eye on the process,” Suga said. “As a general principle, there would be a requirement to examine any deal under the foreign exchange law.”

The Japan government is organizing an alternative offer from Japanese companies that aims to inject 500 billion yen into the chips unit in exchange for a minority stake, one person said. Current bids are non-binding and could change. The deadline for the next round of bidding is mid-May, one of the people said.

Toshiba's likelihood in passing on Foxconn's bid is also said to be backed by a fear of the supplier's business methodology displayed during its acquisition of Sharp in 2016. In that process, the two companies originally agreed to a $6.2 billion takeover, but the final amount landed around $3.5 billion due to Foxconn's last minute bidding adjustment. Foxconn said the decision was based on discovering that Sharp had hundreds of billions of yen in "previously undisclosed liabilities," but the tactics are now said to make Toshiba "reluctant" to agree to Foxconn's bid.

Toshiba is also looking closely at a bid made by South Korea's SK Hynix, but the winning bidder isn't expected to be announced until June, ahead of Toshiba's next shareholder meeting.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

BlandUsername Avatar
78 months ago
Toshiba shot themselves in the foot. They should have excluded Foxconn from the get-go, but didn't to try and drive up the price. Good luck getting anywhere near that now that the official hammer has come down on them.
Score: 5 Votes (Like | Disagree)
Juicy Box Avatar
78 months ago
I wonder if Apple will be bidding and could possibly win.
Apple has ties to China too.
Score: 2 Votes (Like | Disagree)
tongxinshe Avatar
78 months ago
Glad Foxconn is paying the price for playing bait and switch, if that's what they did. Prove yourself untrustworthy and hopefully people won't trust you. Not like we can rely on morals to regulate corporate behavior.

I wonder if Apple's still in the running.
In the Foxconn-Sharp deal, isn't it Sharp that played the untrustworthy role?? Sharp hid ~3 billion debt. Foxconn simply subtracted that amount off its original bid after getting notified of that debt.
Score: 2 Votes (Like | Disagree)
macTW Avatar
78 months ago
"Racist... oh wait, they have justification? Uhm.... racist."

Thankfully this forum is smarter than the average person and hopefully won't spout racism when there is a legitimate reason behind the preference.
Score: 1 Votes (Like | Disagree)
Kabeyun Avatar
78 months ago
Glad Foxconn is paying the price for playing bait and switch, if that's what they did. Prove yourself untrustworthy and hopefully people won't trust you. Not like we can rely on morals to regulate corporate behavior.

I wonder if Apple's still in the running.
Score: 1 Votes (Like | Disagree)

Popular Stories

iOS 17 on Phone Feature

Gurman: iOS 17 to Provide Several 'Most Requested Features'

Sunday March 26, 2023 6:05 am PDT by
Apple changed the strategy for iOS 17 later in its development process to add several new features, suggesting that the update may be more significant than previously thought, Bloomberg's Mark Gurman reports. In January, Gurman said that iOS 17 could be a less significant update than iPhone updates in previous years due to the company's intense focus on its long-awaited mixed-reality...
iOS 16

iOS 16.4 Will Add These 8 New Features to Your iPhone

Sunday March 26, 2023 8:06 am PDT by
Following nearly six weeks of beta testing, iOS 16.4 is expected to be released to the public as soon as this week. The software update includes a handful of new features and changes for the iPhone 8 and newer. To install an iOS update, open the Settings app on the iPhone, tap General → Software Update, and follow the on-screen instructions. Below, we have recapped eight new features and...
apple mixed reality headset concept by david lewis and marcus kane

Some Apple Employees Seriously Concerned About Mixed-Reality Headset as Announcement Draws Closer

Sunday March 26, 2023 8:25 am PDT by
Some Apple employees are concerned about the usefulness and price point of the company's upcoming mixed-reality headset, The New York Times reports. Apple headset concept by David Lewis and Marcus Kane Initial enthusiasm around the device at the company has apparently become skepticism, according to eight current and former Apple employees speaking to The New York Times. The change of tone...
Steve Jobs Theater dusk

Apple Reportedly Demoed Mixed-Reality Headset to Executives in the Steve Jobs Theater Last Week

Sunday March 26, 2023 5:53 am PDT by
Apple showcased its mixed-reality headset to the company's top 100 executives in the Steve Jobs Theater last week, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that the "momentous gathering" is a "key milestone" ahead of the headset's public announcement planned for June. The event was intended to rally Apple's top members of...
top stories 25mar2023

Top Stories: iPhone 15 Pro Design Leak, iOS 16.4 Coming Soon, and More

Saturday March 25, 2023 6:00 am PDT by
We're still almost six months away from the official unveiling of the iPhone 15 lineup, but it seems like every day we're learning more about what to expect from the next-generation models. Notably, this week gave us our clearest look yet at what appear to be some changes for the volume and mute control hardware. iOS 16.4 and associated releases are also right around the corner with some new ...
iOS 16

Apple Releases iOS 16.4 With New Emoji, Safari Web Push Notifications, Beta Changes, Voice Isolation for Calls and More

Monday March 27, 2023 10:03 am PDT by
Apple today released iOS 16.4, the fourth major update to the iOS 16 operating system that initially came out last September. iOS 16.4 comes two months after the launch of iOS 16.3, an update that added Security Keys for Apple ID. iOS 16‌.4 and iPadOS 16.4 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. It can take a few minutes...
Hero0009

Best Apple Deals of the Week: Samsung's Smart Monitor M8 Gets Massive $250 Discount, Along With Year's Best AirPods Prices

Friday March 24, 2023 10:23 am PDT by
We saw a lot of great deals on Apple products and related accessories this week, including Samsung's iMac-like Smart Monitor M8 for $250 off, a 30 percent off spring sale at Anker, and the year's best prices on numerous AirPods models. All of these deals are still available to purchase right now, so we're recapping them and more below. Note: MacRumors is an affiliate partner with some of these ...
dynamic island

iPhone 15 Dynamic Island to Include New Integrated Proximity Sensor

Friday March 24, 2023 12:27 am PDT by
This year, all iPhone 15 models will include Apple's Dynamic Island that unifies the pill and hole cutouts at the top of the display, but there will also be a material change to the feature that wasn't included in the iPhone 14 Pro models. According to a new tweet by Apple industry analyst Ming-Chi Kuo, the proximity sensor on the iPhone 15 series will be integrated inside the Dynamic Island ...