• Home
  • About Us
  • Contact Us
Semiconductor for You
  • Home
  • Semiconductor News
  • Technology
    • Automotive
    • Consumer Electronics
    • IoT
    • Lighting
    • Power Management
    • Wireless
    • Personal Electronics
    • Hardware & Software
    • Research
    • Medical Electronics
    • Embedded Design
    • Aerospace & Defence
    • Artificial Intelligence
  • DIY Projects
  • Market
  • Industries
    • Renesas Electronics
  • Knowledge Base
  • Events
  • Tools
    • Resistor Color Code Calculator
No Result
View All Result
  • Home
  • Semiconductor News
  • Technology
    • Automotive
    • Consumer Electronics
    • IoT
    • Lighting
    • Power Management
    • Wireless
    • Personal Electronics
    • Hardware & Software
    • Research
    • Medical Electronics
    • Embedded Design
    • Aerospace & Defence
    • Artificial Intelligence
  • DIY Projects
  • Market
  • Industries
    • Renesas Electronics
  • Knowledge Base
  • Events
  • Tools
    • Resistor Color Code Calculator
No Result
View All Result
Semiconductor for You
No Result
View All Result
Home Semiconductor News

Broadcom, KKR said to be top bidders for Toshiba’s semiconductor factory

Semiconductor For You by Semiconductor For You
June 12, 2017
in Semiconductor News
0

Broadcom Ltd. and a group led by KKR & Co. are emerging as the two leading bidders for Toshiba Corp.’s semiconductor unit as of Friday’s deadline for second-round offers, according to people familiar with the matter. Broadcom, based in San Jose, California, is offering about 2.2 trillion yen ($20 billion) and would face simpler regulatory reviews than some rivals, said one of the people, asking not to be identified because the matter is private. The competing group, which includes state-backed Innovation Network Corp. of Japan and Development Bank of Japan, plans to offer about 1.8 trillion yen and would benefit from support from the country’s government, the people said.

Western Digital Corp. has been in talks to join the Japan group, but the parties haven’t been able to agree on how to divvy up ownership. The company has been offered a stake of less than 20 percent, but it wants a controlling share, they said. Apple Inc., which uses Toshiba memory chips in its products, is still considering whether to contribute capital to one or more bidders, they said.

Toshiba’s future as a public company depends on selling the memory chip unit and raising cash to pay for losses in its Westinghouse nuclear business. Time is critical because its shares may be delisted if it hasn’t closed the deal by next March, the end of its fiscal year. While Taiwan’s Hon Hai Precision Industry Co. and South Korea’s SK Hynix Inc. have also expressed interest with preliminary bids of as much as $27 billion, Japan’s government is reluctant to let the business fall into their hands. The deal talks are still fluid however and the leading bidders may change.

“Whoever INCJ decides to go with, is likely to be the winner, regardless of the size of the bid,” said Damian Thong, an analyst at Macquarie Group Ltd. “A larger bid that doesn’t have INCJ in it, is unlikely to be successful.” Kaori Hiraki, a spokeswoman for Toshiba, and Toshimitsu Irie, a spokesman for INCJ, declined to comment. A spokeswoman for KKR and a spokesman for Broadcom also declined to comment. Toshiba shares rose as much as 5.6 percent in Tokyo trading.

The auction has been rattled by fierce clashes between Toshiba and Western Digital. The two companies co-own the most important factory in the Japanese company’s memory chip business, a plant in Yokkaichi. Western Digital has argued that under their joint venture agreement Toshiba needs its approval to sell the business — and that Western Digital should have exclusive rights to negotiate a purchase.

Toshiba has refuted those assertions and warned the American company not to interfere in the sale. The Japanese company has also pointed out that Western Digital only became its joint venture partner by acquiring SanDisk Corp. last year, in deal that Toshiba never had rights to approve. Western Digital filed for arbitration in the dispute, a move that threatens to delay the deal and drag out the time for Toshiba to receive its much-needed cash.

Western Digital hasn’t made clear whether it will join the KKR-Japan consortium and could still make an offer on its own, the people said. The US company’s first-round bid was well below rival offers and its balance sheet may not be strong enough to make a competitive offer.

Japan’s powerful Ministry for Economy, Trade and Industry has become involved in organizing the group that includes local funds and KKR, the people said. The government has encouraged Toshiba and Western Digital to work out some compromise. Bain Capital has also expressed interest in bidding for the chips unit and may partner with Hynix, one of the people said. Bain plans to make an offer for 51 percent of the business, the Nikkei newspaper reported.

Broadcom has lined up financing for its offer from three Japanese banks and private-equity firm Silver Lake, Bloomberg reported last month. The lending units of Mizuho Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. plan to provide at least $15 billion in loans, while Silver Lake will add convertible debt.

The type of chip produced by the joint venture, known as flash memory, is enjoying a bumper year. Micron Technology Inc., Samsung Electronics Co. and Hynix have all reported strong demand for the product as the industry moves away from magnetic disks in computer storage.

Content Protection by DMCA.com
Semiconductor For You

Semiconductor For You

Browse by Category

  • Aerospace and Defence
  • Articles
  • Automotive
  • Consumer-Electronics
  • Hardware & Software
  • Interview
  • IoT
  • Knowledge Base
  • Lighting
  • Market
  • personal-electronics
  • Power Management
  • Research
  • Semiconductor Events
  • Semiconductor News
  • Technology
  • Wireless
Semiconductor for You

Semiconductor For You is a resource hub for electronics engineers and industrialist. With its blend of
technology features, news and new product information, Semiconductor For You keeps designers and
managers up to date with the fastest moving industry in the world.

Follow Us

Browse by Category

  • Aerospace and Defence
  • Articles
  • Automotive
  • Consumer-Electronics
  • Hardware & Software
  • Interview
  • IoT
  • Knowledge Base
  • Lighting
  • Market
  • personal-electronics
  • Power Management
  • Research
  • Semiconductor Events
  • Semiconductor News
  • Technology
  • Wireless

Recent News

SEGGER’s Ozone now available for macOS on the M1/M2 (ARM-core) by popular demand

SEGGER’s Ozone now available for macOS on the M1/M2 (ARM-core) by popular demand

March 28, 2023
Infineon AIROC™ CYW20829 Bluetooth LE SoC ready with latest Bluetooth 5.4 specification

Infineon AIROC™ CYW20829 Bluetooth LE SoC ready with latest Bluetooth 5.4 specification

March 24, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2022 Semiconductor For You

No Result
View All Result
  • Home
  • Semiconductor News
  • Technology
    • IoT
    • Wireless
    • Power Management
    • Automotive
    • Hardware & Software
  • Market
  • Knowledge Base
  • Tools
    • Resistor Color Code Calculator

© 2022 Semiconductor For You

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT