After months of negotiations, Toshiba has decided to sell its memory chip unit to a global consortium that includes Bain Capital, SK Hynix, Dell, and Apple, reports Reuters.

No official announcement has been made by Toshiba as of yet, but the company is expected to announce the sale on Wednesday. As of Tuesday, Toshiba was said to be leaning towards a group backed by Western Digital, but Western Digital is said to have failed to agree to some of Toshiba's terms regarding limits on WD's future stake in the business.

toshiba
Western Digital may still attempt to block the sale and is said to be prepared to seek a court injunction to stop it. Western Digital previously invested in Toshiba's semiconductor plant and claims its consent is required for the sale.

Toshiba first announced plans to sell its NAND flash memory unit in January of 2017 to raise funds to cover losses associated with its U.S. nuclear subsidiary, Westinghouse. Many companies, including TSMC, Foxconn, Amazon, Google, Broadcom, and a range of private equity firms entered bids in an effort to get a piece of the memory chip unit.

The consortium, led by Bain Capital, was selected as the preferred bidder in June, and in September, entered a higher bid amid fierce competition. Apple, SK Hynix, Dell, and Bain Capital are said to have offered a combined 2.4 trillion yen, equivalent to $22 billion, along with an additional 200 billion yen for infrastructure.

As of early September, Bain and SK Hynix were said to be providing a total of 567.5 billion yen, while Apple was reported to be offering 335 billion yen, equivalent to $3 billion. That sum is in line with reports suggesting Apple was prepared to spend several billion dollars for a "substantial stake" in the memory business.

Bain, Apple, Dell, and SK Hynix will own a combined 49.9 percent stake in the chip unit, with Toshiba keeping 40 percent and Japanese firms controlling the other 10.1 percent should the sale go through.

Apple already uses Toshiba's flash memory in its products. The iPhone 7 and iPhone 7 Plus include memory sourced from both Toshiba and SK Hynix.

Tag: Toshiba

Top Rated Comments

Michaelgtrusa Avatar
49 months ago
Better this way than some other offers.
Score: 3 Votes (Like | Disagree)
ApfelKuchen Avatar
49 months ago
This won't be over 'til Western Digital has its day in court (or is that mediation?), sometime in 2018.

Overall, I find this interesting. It's a measure of the importance of the way in which chipmakers are approaching the manufacture of Flash. Clearly, companies like Apple and Dell can't trust the chipmakers to expand Flash production capacity sufficiently to lead to a drop in demand-driven pricing (like OPEC deciding how much petroleum to pump).

I once worked for a media company that owned large newspapers. They did something similar, buying part-ownership of paper mills to assure a stable supply.
Score: 3 Votes (Like | Disagree)
macs4nw Avatar
49 months ago
If this goes through, it should give Apple even more priority access to the vast amounts of required flash memory, than they already have, especially with SK Hynix in the mix also.
Score: 2 Votes (Like | Disagree)
Kabeyun Avatar
49 months ago
This won't be over 'til Western Digital has its day in court (or is that mediation?), sometime in 2018.

Overall, I find this interesting. It's a measure of the importance of the way in which chipmakers are approaching the manufacture of Flash. Clearly, companies like Apple and Dell can't trust the chipmakers to expand Flash production capacity sufficiently to lead to a drop in demand-driven pricing (like OPEC deciding how much petroleum to pump).

I once worked for a media company that owned large newspapers. They did something similar, buying part-ownership of paper mills to assure a stable supply.
Back when Tim Cook was running supply chain for Steve Jobs he was a master of buying up NAND to the point where competitors had difficulty maintaining end product volumes. This was before Samsungs and Huaweis and Xiaomis and LGs. Now, iPhone isn't the defacto smartphone anymore and I think it makes sense to own a piece of that supply chain rather than count on satisfactory contracts.
Score: 2 Votes (Like | Disagree)
Glassed Silver Avatar
49 months ago
This won't be over 'til Western Digital has its day in court (or is that mediation?), sometime in 2018.

Overall, I find this interesting. It's a measure of the importance of the way in which chipmakers are approaching the manufacture of Flash. Clearly, companies like Apple and Dell can't trust the chipmakers to expand Flash production capacity sufficiently to lead to a drop in demand-driven pricing (like OPEC deciding how much petroleum to pump).

I once worked for a media company that owned large newspapers. They did something similar, buying part-ownership of paper mills to assure a stable supply.
Right on the money.

It's ridiculous how NAND is basically the oil of the 21st century, let's hope this whole situation will get better in the mid-run.

Demand for storage is ever increasing and we are entering a period where, if supply was better, could soon replace HDDs with NAND for good, ESPECIALLY as we approach the peak of what is possible with HDDs nowadays. Not everyone wants to look at SMR technology as a good compromise of density, price and speed.

Glassed Silver:win
Score: 1 Votes (Like | Disagree)
cube Avatar
49 months ago
Dude, you're getting a Dell! (and Apple).
Score: 1 Votes (Like | Disagree)

Top Stories

YouTube Picture in Picture Feature

YouTube Says iOS Picture-in-Picture Coming to All US Users

Friday June 18, 2021 9:41 am PDT by
After a long wait, YouTube for iOS is officially gaining picture-in-picture support, allowing all users, non-premium and premium subscribers, to close the YouTube app and continue watching their video in a small pop-up window. In a statement to MacRumors, YouTube says that picture-in-picture is currently rolling out to all premium subscribers on iOS and that a larger rollout to all US iOS...
Top Stories 63 Feature

Top Stories: Beats Studio Buds Announced, Apple Watch Series 7 Rumors, and More

Saturday June 19, 2021 6:00 am PDT by
The Apple news cycle started to move beyond WWDC this week, but that doesn't mean there still wasn't a lot to talk about, led by the official debut of the much-leaked Beats Studio Buds that might give us a hint of what to expect for the second-generation AirPods Pro. With no hardware announcements at WWDC, we also took a look at when we might finally see the long-rumored redesigned MacBook...
ios wifi settings

iOS Bug Causes Specific Network Name to Disable Wi-Fi on iPhones

Sunday June 20, 2021 4:15 am PDT by
A wireless network naming bug has been discovered in iOS that effectively disables an iPhone's ability to connect to Wi-Fi. Security researcher Carl Schou found that after joining a Wi-Fi network with the name "%p%s%s%s%s%n" his iPhone's Wi-Fi functionality was left "permanently disabled." Changing a hotspot's SSID did nothing to correct the problem, with even a reboot failing to make a...
maxresdefault

Video: 20 Annoyances Apple Fixed in iOS 15 and macOS Monterey

Friday June 18, 2021 11:36 am PDT by
With iOS 15 and macOS Monterey, Apple is adding several quality of life improvements, which are designed to address some of the complaints that people have had with these operating systems for years now. Subscribe to the MacRumors YouTube channel for more videos. In our latest YouTube video, we're highlighting some of our favorite "fix" features that address long-running problems in iOS and...
16 inch macbook pro m2 render

When Can We Expect the Redesigned MacBook Pros Now?

Wednesday June 16, 2021 7:11 am PDT by
With no sign of redesigned MacBook Pro models at this year's WWDC, when can customers expect the much-anticipated new models to launch? A number of reports, including investor notes from Morgan Stanley and Wedbush analysts, claimed that new MacBook Pro models would be coming during this year's WWDC. This did not happen, much to the disappointment of MacBook Pro fans, who have been...
space gray magic accessories trio

Apple Stops Selling Magic Accessories in Space Gray

Friday June 18, 2021 9:16 am PDT by
Apple this week stopped selling its Magic Keyboard with Numeric Keypad, Magic Mouse 2, and Magic Trackpad 2 accessories for the Mac in a Space Gray color, around three months after discontinuing the iMac Pro, which also came in Space Gray. Last month, Apple listed the Space Gray accessories as available while supplies last, and the company has now removed the product pages from its website...
m1 v intel thumb

Intel Processor Market Share May Fall to New Low Next Year Due to Apple Silicon

Friday June 18, 2021 2:06 am PDT by
Intel may see its market share fall to a new low next year, in large part thanks to Apple's decision to move away from using Intel processors in its Mac computers and instead use Apple silicon. Apple announced last year that it would embark on a two-year-long journey to transition all of its Mac computers, both desktops, and laptops, to use its own in-house processors. Apple is expected to...
3nm apple silicon feature

Apple Supplier TSMC Readies 3nm Chip Production for Second Half of 2022

Friday June 18, 2021 6:59 am PDT by
Apple supplier TSMC is preparing to produce 3nm chips in the second half of 2022, and in the coming months, the supplier will begin production of 4nm chips, according to a new report from DigiTimes. Apple had previously booked the initial capacity of TSMC's 4nm chip production for future Macs and more recently ordered TSMC to begin production of the A15 chip for the upcoming iPhone 13,...
2021 back t0 school

Apple Launches 2021 Back to School Promotion: Free AirPods With Eligible Mac or iPad Purchase

Thursday June 17, 2021 4:56 am PDT by
Apple today launched its seasonal back-to-school sale for the upcoming school year in the United States and Canada, offering students free AirPods alongside purchases of select Macs and iPad models. Similar to last year's promotion, this year's offer includes free AirPods alongside the purchase of a MacBook Air, MacBook Pro, the new 24-inch iMac, the Mac Pro, Mac mini, and the new M1-powered ...
applecare lower prices

Apple Lowers Prices of AppleCare+ Plans for M1 MacBook Air and MacBook Pro

Thursday June 17, 2021 7:33 am PDT by
Apple today lowered the prices of AppleCare+ plans for MacBook Air and 13-inch MacBook Pro models equipped with the M1 chip. Coverage offered by the plans, as well as accidental damage fees, appear to remain unchanged. In the United States, AppleCare+ for the MacBook Air now costs $199, down from $249. The new price applies to both M1 and Intel-based MacBook Air models, although Apple no...