Foxconn Attempts to Ease Concerns Over China Ties as Sale of Toshiba's Memory Chip Unit Nears End

by

Foxconn chairman Terry Gou has spoken out about the ongoing sale for Toshiba's memory chip unit, which has made headlines over the past few weeks as multiple companies have entered the bidding to win the sought-after unit. Previously, Foxconn was perceived as a long shot for winning the bid due to its connections with China, a fact believed to sit unfavorably with Japanese-owned Toshiba.

Now, Gou is presenting points of argument as to why Foxconn's acquisition of Japanese technology would not hurt Toshiba nor the Japanese government, because he says Foxconn would not seek to import any of Toshiba's technologies to Foxconn's China plants (via DigiTimes). Gou argued that Foxconn is simply an enterprise "seeking new markets" in Japan, "and making investments in these markets is very normal."

With Foxconn's help, Gou said that Toshiba has the potential to improve its technology so it doesn't lag behind the advancements of its competitors. Another point of contention for Japanese officials fearful of Foxconn winning the unit centered upon the company leaking secrets behind Toshiba's best technology, to which Gou said such a practice would never benefit Foxconn or any of its partners.


Gou felt he had to speak out "to clarify many of the false accusations that have been made about Foxconn over the past few weeks."

Gou said that leaking technology would not benefit Foxconn or any of Foxconn's partners, and would only hurt Toshiba's future development. With all the outcomes coming out negatively, there would be no point for Foxconn to leak IP, Gou stated.

Gou noted that Toshiba's technology R&D will remain and continue to be processed in Japan, a pointed out that a company with leadership in technology development does not need to be afraid of being copied.

Since Foxconn owns its production lines and plants, details of production procedures would be kept within the plants. Foxconn would also apply to patent Toshiba's technologies to prevent infringement, Gou noted.

Gou finally said that Foxconn is simply "looking to survive" by bidding on the Toshiba memory chip unit, as well as reduce costs and improve its supply chain delivery times. The last we heard about the bidding, Foxconn had rallied U.S. companies Apple and Amazon to chip in funds to help Foxconn win the unit. Foxconn's first bid was around $27B, and it was never clear if additional funds would be enough to calm Toshiba's worries about the company's ties to China.

In another corner of the ongoing bidding for Toshiba's memory chip unit, Western Digital has continued to go after Toshiba, this week seeking a court injunction that would prevent Toshiba from selling the unit without Western Digital's consent (via Reuters). Western Digital and Toshiba are partners in the chip manufacturing business, and the new injunction is said to have emerged after the U.S.-based Western Digital discovered it was left out of a new Japanese government-led group formed to come together and bid for the unit.

Although sources close to the sale say that Western Digital's legal actions threaten to throw the whole auction "into disarray," Toshiba has said in a statement that it is proceeding with selecting a bidder "by the second half of June," as has always been planned. A final, definitive winner for the unit is expected to be decided by June 28.

Top Stories

Apple Takes Legal Action Against Small Company With Pear Logo

Saturday August 8, 2020 11:09 am PDT by
Apple is taking legal action against the developers of the app "Prepear" due to its logo, according to iPhone in Canada. Prepear is an app that helps users discover recipes, plan meals, make lists, and arrange grocery deliveries. The app is a spinoff of "Super Healthy Kids," and the founders claim that they are facing litigation from Apple. Apple reportedly takes issue with Prepear's logo, ...

Kuo: Global iPhone Shipments Could Decline Up to 30% If Apple Forced to Remove WeChat From App Store [Updated x2]

Sunday August 9, 2020 10:17 pm PDT by
In a worst-case scenario, Apple's annual global iPhone shipments could decline by 25–30% if it is forced to remove WeChat from its App Stores around the world, according to a new research note from analyst Ming-Chi Kuo viewed by MacRumors. The removal could occur due to a recent executive order aiming to ban U.S. transactions with WeChat and its parent company Tencent. Kuo lays out...

iPhone Maker Foxconn Says China's 'Days as the World's Factory Are Done'

Wednesday August 12, 2020 7:55 am PDT by
China will no longer be the world's manufacturing epicenter going forward, according to Apple's largest supply chain partner Foxconn, which has been gradually expanding its operations in other countries amid the U.S.-China trade war. "No matter if it's India, Southeast Asia or the Americas, there will be a manufacturing ecosystem in each," said Foxconn chairman Young Liu, according to Bloombe...

Google Maps Debuts New Apple Watch App and CarPlay Features

Monday August 10, 2020 9:16 am PDT by
Google today announced the launch of several features for Google Maps on Apple products, including new CarPlay functionality and a new Google Maps app that works on Apple Watch. The new Google Maps app for Apple Watch works similarly to the iOS app, allowing Apple Watch owners to get directions for a car, bike, public transit, or on foot. The app supports estimated arrival times and...

Apple May Release 4G-Only iPhone 12 in Early 2021

Tuesday August 11, 2020 5:28 am PDT by
In a research note shared by Business Insider, Wedbush Securities analysts said that Apple may release a cheaper iPhone 12 in early 2021 with no 5G connectivity. Wedbush initially believed Apple would launch a mix of 4G and 5G iPhone 12 models this fall. Following re-examination of Asian supply chains, analysts Daniel Ives, Strecker Backe, and Ahmad Khalil revised the predictions,...

iPad Pro Keyboard Comparison: Logitech's $160 Folio Touch vs. Apple's $300 Magic Keyboard

Tuesday August 11, 2020 2:11 pm PDT by
Logitech recently debuted the Folio Touch, a keyboard and trackpad case designed for the 11-inch iPad Pro that serves as an alternative to the Magic Keyboard. In our latest YouTube video, we compare the $160 Folio Touch to Apple's $300 Magic Keyboard to see which is better. Subscribe to the MacRumors YouTube channel for more videos. Logitech is selling the Folio Touch for $160, while Apple's...

Foxconn Reportedly Begins Seasonal Hiring Spree for iPhone 12 Production

Monday August 10, 2020 7:03 am PDT by
Apple's largest manufacturing partner Foxconn has begun its seasonal hiring spree to assist with iPhone 12 production, offering employees who recruit qualified applicants up to a 9,000 yuan bonus, according to Chinese media reports. As usual, Foxconn needs as many hands on deck as possible at its factory in Zhengzhou, China to assist with mass production of the upcoming iPhones. Apple is...

Apple Seeds First Public Beta of watchOS 7 to Public Beta Testers

Monday August 10, 2020 10:33 am PDT by
Apple today seeded the first public beta of an upcoming watchOS 7 update to public beta testers, one week after seeding the fourth beta to developers and a month and a half after the Worldwide Developers Conference. The update can be downloaded after installing the proper profile from Apple's Public Beta website. watchOS 7 should not be installed on a primary device as it is still an early...

Apple Watch Likely to Adopt MicroLED Display Technology in 3-4 Years

Monday August 10, 2020 2:55 am PDT by
This year's Apple Watch Series 6 is expected to feature an OLED screen like previous models, but a future model is likely to be the first Apple product to adopt MicroLED display technology, albeit not for another three to four years. That's the main takeaway reading between the lines of comments made by the chairman of Epistar, Taiwan's top LED producer, which is reportedly working on a...

Parallels Desktop 16 Brings macOS Big Sur Support, Multi-Touch Gestures, 20% Faster DirectX, and More

Tuesday August 11, 2020 2:17 am PDT by
Parallels Desktop 16 released today, bringing some notable new features and performance enhancements to the virtualization software, including full support for macOS Big Sur. When Apple introduced macOS Big Sur, it ended support for the third-party kernel extensions that previous versions of Parallels were built on. That forced the developers to re-engineer the virtualization software from the ...