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'Foxconn' Articles

Apple Has Certified Key Suppliers of 2018 iPhones as Volume Production Set to Begin

Apple has successfully completed certification of key component suppliers for its widely rumored trio of 2018 iPhones, expected to be announced in September, according to Taiwanese publication Economic Daily News. 2018 iPhone imitation models via Marques Brownlee/MKBHD The report claims that these suppliers have begun shipping large quantities of camera lenses, metal chassis, and other components to larger manufacturers, including Foxconn, which is expected to assemble the majority of 2018 iPhones, according to Taiwanese research firm Fubon Securities. In particular, Fubon Securities said Foxconn will assemble every second-generation iPhone X, 90 percent of units for the so-called iPhone X Plus, and 75 percent of units for an all-new, lower-priced 6.1-inch iPhone. Taiwanese manufacturer Pegatron is said to fulfill all of the remaining orders. While the supply chain is clearly gearing up for 2018 iPhones, it's unclear when volume production of fully-assembled devices will begin. Foxconn recently began its seasonal hiring spree in preparation. Foxconn typically ramps up manufacturing of new iPhones over the summer, for release in September, but last year was somewhat of an anomaly. While the iPhone 8 and 8 Plus launched in September, the iPhone X was delayed until November 3, reportedly due to TrueDepth sensor-related manufacturing challenges. Back in June, oft-reliable Apple analyst Ming-Chi Kuo said all three 2018 iPhones will be both announced and available to order this September, but Morgan Stanley analyst Katy Huberty recently cautioned that the

Foxconn Begins Seasonal Hiring Spree Ahead of 2018 iPhones

Apple supplier Foxconn is gearing up to hire more workers for its plants in Zhengzhou, China by offering bonuses to workers who help assemble Apple's 2018 iPhones. According to a new report by the Economic Daily News, the supplier is offering one-off bonuses of up to CNY 2,000 (US $295) to workers who renew their contracts at this time (via DigiTimes), and the hiring campaign is expected to last through November 2018. Suppliers typically begin their hiring sprees in the summer months in preparation for the annual fall iPhone launches, with Foxconn and Pegatron initiating hiring campaigns as early as May in 2016 and June in 2014. Renders of the three iPhones expected to launch this fall The report also points back to the "weaker-than-expected" profits that Foxconn received in the fourth quarter of 2017 following the November launch of the iPhone X, believed to be due to the high pre-production costs of the smartphone. In an effort to prevent this from happening again in 2018, the supplier is applying "stricter cost management" to its iPhone production process. Foxconn is expected to assemble the majority of Apple's three iPhone models coming out later this year, including all of the second-generation iPhone X, 90 percent of the "iPhone X Plus," and 75 percent of the lower-priced 6.1-inch iPhone. This news came in a report by the Taipei Times last month, which claimed that the rest of the 2018 iPhone orders will be fulfilled by Taiwanese manufacturer Pegatron. News surrounding the ramp-up of iPhone production usually begins around this time of year, with the

Foxconn Expected to Assemble Bulk of 2018 iPhones

Taiwanese manufacturer Foxconn will assemble the majority of Apple's widely rumored trio of new iPhones expected to launch in 2018, according to the Taipei Times, citing research from Fubon Securities. Foxconn, formally known as Hon Hai, will reportedly assemble all of the second-generation iPhone X, 90 percent of the so-called iPhone X Plus, and 75 percent of an all-new, lower-priced 6.1-inch iPhone. Taiwanese manufacturer Pegatron is said to fulfill the remaining orders:Hon Hai has been selected to assemble the bulk of the new iPhones, including all of the premium 5.8-inch OLED model and 90 percent of the 6.5-inch OLED phones, as well as 75 percent of the 6.1-inch LCD model, with the remainder given to Pegatron, the report said.Wistron, another Taiwanese manufacturer, will not assemble any of the new 2018 iPhones, according to the report. Fubon Securities predicts that the 6.1-inch iPhone will be priced around $799 in the United States, and use nearly all of the same materials as the iPhone 8 Plus, at an estimated cost of $275 to Apple. Last month, respected Apple analyst Ming-Chi Kuo said all three new iPhones will be both announced and made available to order this September. In a previous research note, he indicated that Apple has resolved the manufacturing challenges that resulted in the iPhone X's delayed launch and supply

Foxconn's Wisconsin Plant Pivoting From Large to Small-Medium Displays in Cost-Cutting Measure

Apple supplier Foxconn Technology Group is making a shift in its expansion plans to Wisconsin in the United States, where it will now produce small to medium-size displays for Apple and other customers. This is a change from its original plan of having the Wisconsin plant produce large television displays, and the move to smaller displays is said to help lower initial costs at the factory (via Nikkei). In total, Foxconn's Wisconsin plant will make displays for car infotainment systems, personal computers, tablets, smartphones, smaller televisions, and other "niche products." If the supplier kept on track with building large TV displays, the output would have required a "more complete" local supply chain lacking in the state, and a greater initial monetary investment for production equipment. "Previously, Foxconn planned to build a 10.5th-generation display manufacturing factory, which is more suitable for large-sized displays," supply chain sources told Nikkei. "But later they figured out that it might be more feasible and efficient to build a sixth-generation display plant or an 8.5th-generation factory from which they could move some equipment from Asia." The incomplete local supply chain is believed to have been one of the bigger obstacles to Foxconn's large panel plans in Wisconsin. Sources speaking to Nikkei said, "It would require other companies like Corning to also set up a glass substrate facility nearby, as it's almost impossible to ship fragile, huge size glass materials from a distant place." Foxconn has been open to building a facility in the

Foxconn Acquires Popular Accessory Maker Belkin Along With Linksys and Wemo

Foxconn is best known as an Apple supplier that assembles Apple's devices and supplies components to the Cupertino-based company, but as of today, it's taking over a major Apple accessory maker. Foxconn Interconnect Technology (FIT), a Foxconn subsidiary, today announced that it has acquired Belkin International in a deal that's worth $866 million. The acquisition includes the Belkin brand along with Linksys, Wemo, and Phyn, other companies owned by Belkin. One of Belkin's recently introduced wireless charging accessories The acquisition will allow Foxconn Interconnect Technology to "further tap into premium accessories and the smart home market." The deal is also expected to expand Belkin's presence both in the United States and "key markets globally.""FIT is excited to acquire Belkin and its capabilities in the premium consumer products space," said Sidney Lu, CEO, FIT. "Integrating Belkin's best-in-class capabilities and solutions into FIT, we expect to enrich our portfolio of premium consumer products and accelerate our penetration into the smart home." "This move will accelerate our vision of delivering technology that makes the lives of people around the world better, more convenient and more fulfilling. I am thrilled to take our brand portfolio of Belkin, Linksys, Wemo and Phyn to new heights," said Chet Pipkin, CEO and founder, Belkin International. "We see significant synergies with FIT, including leveraging its world-class manufacturing capability to enhance Belkin's operating efficiency and competitiveness. The transaction also grants us access to more

Taiwanese Apple Suppliers Face Falling Stock Prices Amid Ongoing Concern Over Weakened iPhone X Demand

Three major Apple suppliers faced falling stock prices on the Nikkei Asia300 Index today, believed to be directly related to "concerns over demand for iPhone X." The three Taiwanese suppliers were Largan Precision, Hon Hai Precision Industry (Foxconn), and Taiwan Semiconductor Manufacturing Company, dropping 4.4 percent, 1 percent, and 3 percent on the index, respectively. iPhone X demand concerns and decline in supplier stock prices came after the latest analyst report by JP Morgan yesterday, predicting "slashed" iPhone X orders in the first part of 2018. In a research note reported by CNBC, analyst Narci Chang said "high-end smartphones are clearly hitting a plateau this year," singling out Apple by forecasting that iPhone X manufacturing "might be down 50 percent quarter-over-quarter." Reports of "weakened" iPhone X demand heading into 2018 began emerging late last year, mainly stemming from analyst belief that the high price of the device would eventually lead to reduced sales after early adopters got their iPhone X. These reports have caused several Apple suppliers to be anxious over low order visibility for the full range of iPhone 8, iPhone 8 Plus, and iPhone X models in Q1 2018. CLSA analyst Nicolas Baratte argued that the reported reduction of the iPhone X's Q1 2018 shipment forecast from 50 million units down to 30 million units "remains inflated." Despite multiple stories about the iPhone X's plateaued demand in early 2018, the smartphone is believed to have sold well following its fall launch in 2017 and throughout the holiday season. Research data

MacBook Pro Reportedly Won't See Any Major Upgrades in 2018

Apple currently has no plans to make any major upgrades to its MacBook Pro lineup in 2018, according to DigiTimes. Of course, if accurate, the report doesn't rule out a MacBook Pro refresh or update of any kind this year. An excerpt from the report, citing sources within Apple's supply chain:The sources revealed that Foxconn had been aggressively working to land more MacBook orders from Apple during the past few years by offering attractive quotes. Since Apple has not had a major upgrade to its MacBook product line since the releases of its new MacBook Pro devices at the end of 2016 and has no plan for one in 2018, the US-based vendor is planning to shift orders for models that are already in mass production to Foxconn to save costs and reduce risks.Apple's manufacturing partner Foxconn could land a large number of additional MacBook orders this year, the report adds. The increase could come at the expense of Quanta Computer, which has been Apple's major MacBook supplier in recent years. Taiwan-based Foxconn has reportedly been working to boost its chances of notebook orders from Apple by offering attractive quotes. Apple will therefore switch MacBook orders to Foxconn for models that are already in mass production as a way to save costs and reduce risks, according to the sources cited.Foxconn is expected to begin mass shipments to fulfill the new orders in the second quarter of 2018, said the sources. Foxconn and Quanta both declined to comment on their clients or orders. The sources pointed out that Apple started outsourcing the assembly for some of MacBooks'

Apple Supplier Foxconn Halts Interns' Illegal Overtime at iPhone X Factory in China

Apple supplier Foxconn says it has stopped interns from working illegal overtime at its factory in China, after reports emerged that at least six students worked eleven-hour days on iPhone X production lines. Today's announcement follows a Financial Times report earlier this week that revealed around 3,000 students worked at its iPhone X assembly plant in Zhengzhou, as the firm struggles to catch up with demand for the smartphone after production delays. A worker assembles iPhones in a Foxconn factory Apple on Tuesday said an audit had confirmed "instances" of student interns working overtime at the supplier facility in Henan province, and both Apple and Foxconn said they would take remedial action to stop the practice, which breaches Chinese laws preventing children from working more than 40 hours per week. "Apple is dedicated to ensuring everyone in our supply chain is treated with the dignity and respect they deserve," the tech giant said today in a statement given to the BBC. "We know our work is never done and we'll continue to do all we can to make a positive impact and protect workers in our supply chain." Foxconn, which operates the intern program, told the BBC in a statement that it had taken "immediate action to ensure that no interns are carrying out any overtime work". It added that "interns represent a very small percentage" of its workforce in China and that the breach of labour laws was inconsistent with its own policies. Foxconn is thought to hire large numbers of seasonal workers each year to assemble the latest iPhone models in time for

Apple Taking Action After Students Worked Overtime to Assemble iPhone X at Foxconn

Apple and its manufacturing partner Foxconn have confirmed instances of students working overtime to assemble the iPhone X, and both companies are now taking remedial action, as reported by the Financial Times. A technician inspecting iPhone components at a factory Apple conducted an audit and confirmed "instances of student interns working overtime at a supplier facility in China," according to the report. "We've confirmed the students worked voluntarily, were compensated and provided benefits, but they should not have been allowed to work overtime," it added. Foxconn said that "all work was voluntary and compensated appropriately," but admitted that the interns "did work overtime in violation of our policy," which reportedly prohibits interns working more than 40 hours per week. The statements from Apple and Foxconn come after six high school students told the Financial Times they routinely work 11-hour days assembling the iPhone X at Foxconn's factory in Zhengzhou, China."We are being forced by our school to work here," said Ms Yang, an 18-year-old student training to be a train attendant who declined to use her first name for fear of punishment. "The work has nothing to do with our studies." She said she assembled up to 1,200 iPhone X cameras a day.The students, aged 17 to 19, reportedly said they were told that a three-month stint at the factory was required "work experience" that they had to complete in order to graduate from Zhengzhou Urban Rail Transit School. Foxconn is believed to hire a significant number of seasonal workers each year to assemble

Apple COO Jeff Williams and Foxconn Chief Will Reportedly Meet Amid iPhone X Production Issues

Apple's operating chief Jeff Williams will reportedly meet Foxconn chairman Terry Gou later this month, following several reports about ongoing iPhone X production issues, according to Nikkei Asian Review. While the report did not say which topics Gou and Williams will discuss, it said the two executives will presumably look at ways to deal with the manufacturing bottleneck for Apple's new high-end smartphone. Williams will be visiting Taiwan for the 30th anniversary of TSMC, the sole supplier of the A11 Bionic chip in the latest iPhone models, the report said. A ceremony marking the celebration is scheduled for Monday. Apple's suppliers are still struggling to perfect manufacturing of the iPhone X's TrueDepth camera and 3D facial recognition system, according to the report. KGI Securities analyst Ming-Chi Kuo highlighted the issues last month. Multiple reports have claimed it has taken more time to assemble the TrueDepth system's so-called "Romeo" module than the "Juliet" module. The "Romeo" module reportedly includes the dot projector that beams more than 30,000 invisible dots to create a precise depth map of your face, while the "Juliet" module includes the infrared camera that analyzes the pattern. Together, they help power new iPhone X features such as Face ID and Animoji. Foxconn is the sole assembler of the iPhone X, while its subsidiary Sharp and LG Innotek are reportedly responsible for assembling the 3D sensor modules. Today's report cited an industry executive who said that while the yield rate has improved, it has not yet reached a

Foxconn Plans Trio of 'Ancillary Facilities' to Surround Main Wisconsin LCD Plant

After an announcement in July that Foxconn will build a $10 billion LCD panel manufacturing plant in southeast Wisconsin, a new report out today states that the Apple supplier is now planning to build three "ancillary facilities" in Wisconsin as well (via Reuters). The three buildings are planned to be opened for operation as early as 2018, two years ahead of when the main LCD facility is expected to debut in 2020. The LCD plant will be focused on large-screened panels for TV sets, and with Apple potentially interested in investing in the United States plant, some buildings on the new Foxconn campus could eventually include an assembly line for smaller displays used in iPhones, iPads, or MacBooks. The three facilities will be much smaller than the main plant and require a combined investment of below $1 billion. Taiwanese electronics manufacturer Foxconn on Monday said it plans to build three facilities in the U.S. state of Wisconsin for operation as early as next year, as part of a campus housing a $10 billion liquid crystal display (LCD) factory due for 2020. Foxconn, formally Hon Hai Precision Industry Co Ltd (2317.TW), said it will begin by setting up a back-end packaging line, high-precision molding line and end-device assembly line. It may also start importing glass from Taiwan, China and Japan. Foxconn is now awaiting a final decision on a bill that aims to grant the manufacturer a $3 billion incentive package for the Wisconsin plant, which will be met with approval or denial sometime in September. If approved, Foxconn will "immediately" begin land

HomePod Supplies Limited at Launch, but Foxconn Coming on Board in 2018 to Increase Production

Inventec Appliances has been a rumored supplier for Apple's HomePod smart speaker since before the device was announced at WWDC in June, and now the manufacturer has indicated that supplies for HomePod might be limited at launch, in line with most Apple product launches (via Nikkei). The news came from Inventec Appliances president David Ho during a press conference today. Although his comments never specifically mentioned "HomePod," the estimated time frame given for the release of the product -- late in 2017 -- and its description as a high-profile "smart home device," suggest it to be Apple's upcoming speaker. At WWDC, Apple confirmed that the HomePod would launch sometime in December. Now, Ho has stated that the HomePod's contribution to the company's revenue for this year will be "fairly limited" -- which is expected given the device is launching so late in the year -- with optimistic improvements to profit gained from HomePod sales predicted for early 2018. One analyst speculated that the number of HomePod units shipped in December 2017 will be around 500,000. “We will finally ship the smart home device this year, but its contribution will be fairly limited and hopefully that will improve next year,” Inventec Appliances President David Ho told analysts and reporters during an earnings conference. “Inventec Appliances will likely only ship some 500,000 units of HomePod this year, and the device’s contribution to the group’s revenue will be less than 1%,” said Arthur Liao, an analyst at Taipei-based Fubon Securities. In 2018, Apple will look to open up

Multiple Apple Suppliers Share Revenue Reports Ahead of 'Peak' iPhone and Apple Watch Season

A collection of Apple suppliers have shared revenue reports today, which also provide a glimpse into the upcoming "peak" iPhone and Apple Watch manufacturing season. Starting off, Foxconn looked back at its profits in July and reported consolidated revenues of NT$315.06 billion (US$10.62 billion) for the month, which marks an increase of 7.53 percent year-on-year. For the first seven months of 2017, Foxconn's combined revenues were NT$2.2 trillion, increasing by 1.64 percent year-on-year (via DigiTimes). Those watching Foxconn's revenue report are now expecting the October-December period to be the "peak of 2017" for the company, thanks to its status as one of Apple's biggest suppliers and the launch of the iPhone 8 sometime in September. Foxconn's revenue will increase "gradually" in August, according to market watchers, and will continue until the end of the year. Holiday spending traditionally helps increase Apple and its suppliers' revenue, even boosting Foxconn's December period in 2016 in the face of an overall year that saw its first-ever profit decline. Check out our recent hands-on with an iPhone 8 dummy model Some market watchers expect Foxconn's revenues to increase gradually beginning August and the growth will last until the end of 2017 with the fourth quarter being the peak of 2017 for Foxconn. Apple Watch supplier Quanta Computer announced revenues for the second quarter of 2017 at NT$235.37 billion (US$7.93 billion), growing 3.3 percent from the previous quarter and 13.3 percent from the year-ago quarter. Today's report stated that next-generation

Apple Supplier Foxconn Confirms Plans to Build TV Display Factory in Wisconsin

Apple supplier Foxconn today announced plans to invest $10 billion in the United States, which will go towards building a new factory in Wisconsin that will employ 3,000 or more workers. Foxconn is sharing the news at an event at the White House on Wednesday afternoon, says Recode. The upcoming factory will produce large LCD displays that are meant to be used in televisions and other similarly sized electronics, but Foxconn chairman Terry Gou has said Apple is willing to invest in the factory, so it could be expanded to smaller displays in the future. According to the Trump administration, the factory could grow to employ as many as 13,000 workers, while also encouraging Foxconn to build additional facilities in other parts of the country. Foxconn has been mulling a U.S. factory for several months and has been in talks with both the U.S government and several state governments. Foxconn considered several locations for the factory before settling on Wisconsin. 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.

Foxconn Reportedly Nearing Decision to Invest in Display Factory in Wisconsin

Taiwanese electronics manufacturer Foxconn is nearing a decision to invest in Wisconsin, and could hold an event in Washington, D.C. as soon as this week to discuss its U.S. investment plans, according to The Wall Street Journal. Foxconn is one of Apple's primary iPhone assemblers in China, but in Wisconsin, the company is initially looking at producing display panels that can be used in large-screen electronics like televisions, according to the report. The report, citing two people allegedly familiar with the plans, said Foxconn is also looking in the Detroit area for a possible factory. Last month, Foxconn chairman Terry Gou confirmed that Foxconn is interested in investing at least $10 billion towards U.S. manufacturing in seven states: Ohio, Pennsylvania, Michigan, Illinois, Wisconsin, Indiana, and Texas. Foxconn's display factory in Wisconsin will reportedly cost at least $7 billion. Gou said it could create tens of thousands of American jobs. Earlier, Gou confirmed Apple is willing to invest in the facility, suggesting the Wisconsin plant could eventually also be used to manufacture smaller displays for products like iPhones, iPads, and MacBooks. Foxconn has reportedly been in talks with U.S. government officials for several months over the facility, including House Speaker Paul Ryan, a Republican who represents a district in southeastern Wisconsin. Gou said Foxconn will work closely with Japanese display maker Sharp, which it acquired last year, on its U.S. investment plans. Rumors suggesting Foxconn might open its first U.S. factory began

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

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

Foxconn Partnering With Apple and Amazon In Renewed Attempt to Win Toshiba's Memory Chip Unit [Updated]

Apple and Amazon will join Foxconn in a bid to win Toshiba's NAND memory chip unit, which has been on sale since March and was previously said to finally conclude bidding sometime in June. Nikkei quoted Foxconn chairman Terry Gou as saying that Apple and Amazon will "chip in funds" to help Foxconn win the final bid (via Reuters). Gou left out the exact amount of the funding that Apple and Amazon would provide, and it was also mentioned that Japanese manufacturer Sharp, which Foxconn acquired last year, will also take place in the bidding. In an official statement, Foxconn referenced Apple and Amazon by calling the U.S. companies "strategic partners" in the bid for Toshiba's memory chip unit, while mentioning that more details would come "at the appropriate time." Apple Inc and Amazon.com Inc will join Foxconn's bid for Toshiba Corp's semiconductor business, the Nikkei business daily quoted Foxconn Chairman Terry Gou as saying on Monday. The two U.S. technology giants plan to "chip in funds", Gou said in an interview, according to the newspaper. "Of course Apple and Amazon are offering money together, but I cannot comment on how much funds each company is putting on the table," Gou said at a hotel in Osaka. The sale of Toshiba's chip unit has been riddled by a legal battle with Western Digital over the past few weeks, making it uncertain who -- if anyone -- would end up winning the bid for the unit. Following the announcement of the initial sale, Apple was reportedly looking into spending several billion dollars for a "substantial stake" in the Toshiba memory chip

Foxconn Still in Talks With U.S. Government Over LCD Factory for iPhone and iPad Screens

It's been a few months since the last few rumors regarding Foxconn's potential manufacturing expansion into the United States, with company chairman Terry Gou placing uncertainty on the reports at the time. Now, sources in the Taiwan supply chain are once again claiming that Foxconn -- one of Apple's biggest suppliers -- is currently talking with both the U.S. federal government as well as individual state governments about building a TFT-LCD factory in the states (via DigiTimes). The thin-film-transistor LCD manufacturing facility is said to produce small- to medium-sized displays for a collection of electronic devices, including autonomous driving systems in vehicles, medical care systems and mobile displays. Specifically, for Apple, the Taiwanese sources said that Foxconn's U.S. plant would build screens for the iPhone, iPad, and MacBook. Foxconn Electronics is talking with the US federal government and state governments about investing in the US and is likely to set up a 6G TFT-LCD panel factory there to produce small- to medium-size displays for IoT (Internet of Things) applications, including automotive, medical care and mobile terminal displays, according to Taiwan-based supply chain makers. As Foxconn is the largest OEM for Apple, a 6G line in the US can produce panels for the iPhone, iPad and MacBook, the sources said. In addition, global demand for automotive displays is fast growing along with development of ADAS (advanced driver assistance system) and autonomous driving technology and a 6G line can produce automotive display panels, the sources noted.

Toshiba Expected to Reject Foxconn's $27B Bid For Memory Chip Unit Due To China Ties

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. 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

TSMC Drops Out of Race to Acquire Toshiba Flash Unit, Foxconn Highest Bidder

Taiwan Semiconductor Manufacturing Company (TSMC) has withdrawn its offer for Toshiba's highly sought-after NAND flash memory business, leaving major Apple supplier Hon Hai in the driving seat to acquire the unit. Hon Hai, also known as Foxconn, has offered up the highest bid so far, with almost 3 trillion Japanese yen ($30 billion) said to be on the table, according to Japanese paper Asahi Shimbun on Friday. Shares in Toshiba jumped 7 percent on the news. Toshiba is said to have narrowed down the number of bidders for its semiconductor business, which it is seeking to sell in order to raise at least $9 billion to cover U.S. nuclear unit charges that threaten the conglomerate's future. Out of the initial 10 interested parties one of which was reportedly Apple, the smaller group of bidders includes Western Digital, Korea's SK Hynix, U.S. investment fund Kohlberg Kravis Roberts & Co, and a combined partnership bid from Silver Lake Management and U.S. chipmaker Broadcomm. Media reports made no mention of whether Apple made the cut, making the prospect seem unlikely. Japan's government could oppose a sale to Taiwan-based Foxconn because of the strategic value of Toshiba's technology to the national interest, according to sources who spoke to Bloomberg. Toshiba reportedly wants to encourage Japanese companies to participate in the bidding process, since none are in the current group. The second round of the bidding war is expected to be held before the end of May, with the winner is expected to be announced in June before Toshiba's next shareholder