Hon Hai reportedly not shortlisted for acquisition of Toshiba Memory

2017/06/08 18:56:15 fontsize-small fontsize-default fontsize-big
CNA file photo

CNA file photo

Taipei, June 8 (CNA) Taiwan-based Hon Hai Precision Industry Co. (鴻海), which was seeking to acquire the semiconductor business of financially troubled Toshiba Corp., has been excluded from the final bidder list, according to Reuters.

Citing unnamed sources, the report said Wednesday that Toshiba has narrowed its choices to two potential buyers, but Hon Hai was not one of them.

According to the report, the two bidders favored by Toshiba are a consortium organized by U.S. integrated circuit designer Broadcom Inc. and U.S. high-tech fund Silver Lake, and a group formed by U.S. computer data storage supplier Western Digital Corp. and Japanese government-related investors.

Toshiba is expected to name the successful bidder after a board meeting on June 15, according to the report.

There had been concerns that Toshiba's sophisticated memory chip technology would be leaked to China if its semiconductor business was sold to Hon Hai, a contract manufacturer that rolls out iPhones, iPads and many other devices at its sprawling production facilities in China.

However, in an interview in the Nikkei Asia Review earlier this week, Hon Hai Chairman Terry Gou (郭台銘) dismissed such concerns, saying that the speculations were unfounded.

Gou said he has been building his business empire with his own funds, investing with his own profits and never used money from others, referring to funds from China.

He said that Apple and Amazon would be joining Hon Hai's bid for the Toshiba semiconductor branch -- Toshiba Memory – that was put up for sale to cut the Japanese firm's losses resulting from its nuclear power investments in the United States.

The Reuters report said that Broadcom has put up a bid of 2.2 trillion Japanese yen (US$20 billion), which Toshiba finds attractive, while Western Digital has raised its bid from 1.8 trillion yen to about 2 trillion yen as Toshiba had hoped.

Meanwhile, Hon Hai, also known as Foxconn in the global market, has teamed up with Sharp Corp. to bid for Toshiba Memory, the world’ largest producer of NAND chips that are used in computer data storage devices.

Another bidder was a consortium formed by U.S. private equity fund Bain Capital with South Korea's memory chip maker SK Hynix Inc., according to Reuters.

(By Jalen Chung and Frances Huang)
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