The iPhone giant is reportedly looking to make a massive investment in the Japanese company as part of the deal.
According to latest reports, Apple is looking to make a considerable investment in Japanese multinational conglomerate Toshiba’s substantial computer memory business, which has recently been put up for sale. The report, published by Japanese public broadcaster NHK, as part of its lunchtime news, stated that the iPhone-giant is looking to acquire “several tens” of percent in Toshiba Memory stock through a huge direct investment of several billion dollars.
Additionally, the report also stated that Apple is thinking of teaming up with a major supplier and manufacturer of the iPhone, Foxconn Technology, to take over Toshiba’s struggling semiconductor business. Foxconn has allegedly offered $27 billion as part of the takeover, which would give it over 20% in stake.
Toshiba recently ran into quite a bit of a disaster following the bankruptcy of nuclear power business Westinghouse Electric Co, one of its subsidiaries, due to billions of dollars in losses incurred because of cost overruns and project delays in its South Carolina and Georgia projects. Although the memory chip business is one of Toshiba’s biggest performers, the recent move of putting it up for sale is intended to help mitigate that disaster and give Toshiba the means to make a comeback in the market.
The move, however, is facing quite a bit of opposition from the Japanese government, which has expressed concerns about Toshiba selling “critical technologies,” namely, its semiconductor business, to overseas buyers, but Apple will reportedly make Toshiba retain some of its shares so that it can maintain partial Japanese ownership.
Toshiba also released its first financial report in nine months towards the beginning of this week, which shows a US$5.9 billion dollar loss due to the Westinghouse bankruptcy, while the memory chip business had managed to earn a profit of $934 million on sales of $5.8 billion.
The report, however, was published without the approval of auditors, which is a highly unorthodox move for a Japanese company, and is possibly an indication of the company’s eventual collapse in the near future.