‘Toshiba probably does not sell chip department to Western Digital’

Toshiba would like to sell its semiconductor department to Bain Capital, and not to Western Digital, which will be used by a company. But Foxconn is still in the running.

The soap around Toshiba is nearing its end now the deadline approaches to find a buyer for the chip producing department. The Japanese technology giant must sell that department to close the financial gap caused by the bankruptcy Westinghouse, a US subsidiary of Toshiba in the nuclear sector.

In recent weeks, Toshiba has been negotiating with Western Digital, but because it is also operating a factory together, it would be spokeswoman Reuters. The sale also has an impact on the power relations there.

Reuters’ sources now say that the company will talk to another candidate a few days before the end of the sales deadline: a group led by Bain Capital and Korean chip maker SK Hynix. The fact that two Japanese entities, Network Corp of Japan, and Development Bank of Japan may also participate in this, is already benefiting for their camp.

Toshiba itself does not comment on the precise negotiations. But with Western Digital there would be 2 billion yen (15.5 billion euros). The group around Bain Capital would meanwhile have increased its bid to 2.4 billion yen (18.2 billion euros). Also, Hon Hai Precision Industry, known as the Taiwanese Foxconn, would talk with Toshiba but nothing about their offer or ambition is known.

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