Foxconn planning b bid for Toshiba's chip business: Report

Updated 2017-04-12 10:00:47

Foxconn Technology Group is reportedly planning to bid up to billion to acquire Toshiba's chip business, according to Bloomberg.

It's yet another major acquisition swoop on a Japanese high-tech firm by Foxconn which earlier bid for taking over the electronics firm Sharp.

Analysts estimate that a reasonable valuation of Toshiba's chip business is between .5 billion and billion, and those familiar with the matter say that the second-highest bidder offered in the region of trillion at the end of March, according to a Bloomberg report.

The world's largest contract electronics manufacturer is apparently willing to bid high as it currently does not own any large memory manufacturer, and Toshiba's chip business would support Foxconn as it develops memory as a 'cash-cow' for use in a variety of networking equipment, such as Apple products.

Toshiba, the second largest chip producer is keen to sell all of its chip business, as it looks for cash to survive a substantial overrun of a US nuclear power plant project.

At the end of March, the multinational corporation approved a Chapter 11 bankruptcy filing in the United States by its embattled Westinghouse Electric unit with the conglomerate saying it faced a possible 712.5 billion yen (.5 billion) writedown on its failing nuclear energy business and a related group net loss of more than 1 trillion yen.

On Tuesday, Toshiba reported a group net loss of 552.41 billion yen due to losses related to hefty writedowns incurred by the nuclear power plant.

On sales of 576.28 billion yen, Toshiba posted a group operating loss of 3.85 trillion yen during the April-December period.

The filing Tuesday without the approval of an auditor has yet to be accepted by regulators or the Tokyo bourse and could see the Tokyo-based firm delisted.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58January 21 2018 22:34:03

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16January 21 2018 22:34:03

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18January 21 2018 22:34:03

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords