Apple considers teaming with Foxconn for stake in Toshiba's semiconductor unit

apple
Apple is considering partnering with Foxconn to take a major stake in Toshiba's semiconductor business.

Shares of Toshiba were partially buoyed this morning following a report that Apple is considering taking a major stake in the Japanese company’s semiconductor business.

Japanese public broadcaster NHK reported that Apple may team up with longtime partner Foxconn to invest “at least several billion dollars” in exchange for more than 20% of the semiconductor unit. Reuters, which picked up on the news, reported that Toshiba would retain a partial stake to ensure that the business remains under U.S. and Japanese control, addressing concerns regarding national security from Japanese regulators.

Bloomberg also ran with the story, reporting that Toshiba’s memory chip business is on the market in an effort to offset a $6.56 billion writedown at Westinghouse, the company’s nuclear equipment business in the U.S. Toshiba shares sank more than 8% this morning before rebounding somewhat on the Apple news; they were trading down less than 5% by noon Friday.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceWireless!

The Wireless industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceWireless as their must-read source for the latest news, analysis and data on this increasingly competitive marketplace. Sign up today to get wireless news and updates delivered to your inbox and read on the go.

Foxconn remains the world’s largest manufacturer of the iPhone, and reports earlier this week indicated that the Taiwanese company was willing to pay $27 billion for Toshiba’s semiconductor unit. Toshiba is a major worldwide player in flash memory chips, second only to Samsung.

Foxconn is reported to be one of four companies vying for at least part of Toshiba’s chip business; others are Broadcom, SK Hynix, and Western Digital, Reuters said. Apple has yet to play a role in any of those bids.

An investment with Foxconn would mark Apple’s first direct stake in a significant memory chip company, Reuters said, and would help solidify a key element of the supply chain that has become a hallmark for the iPhone vendor.

Suggested Articles

Dish Network may be paying attention to Rakuten’s woes, as it has used the Japanese operator's greenfield 4G mobile network build as an analogy for its…

Verizon’s mobile 5G service, while still limited to small pockets of urban areas, is delivering impressive speed improvements from LTE, according to July…

Common Networks is collaborating with Facebook on the deployment of Terragraph mmWave hardware and technology to enable faster speeds in the home.