Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康), is pressing its case to acquire Toshiba Corp’s memory chip unit, as the Japanese conglomerate struggles to complete the sale and avoid having its shares delisted from the Tokyo Stock Exchange.
Hon Hai has broad support for its offer from Apple Inc, Softbank Group Corp and Sharp Corp and is ready to proceed right away, Hon Hai spokesman Louis Woo (胡國輝) said.
He declined to specify how much the company is offering for the business, but people familiar with the matter have previously said it is bidding more than the two rival groups led by KKR & Co LP and Bain Capital LP.
“The bid speaks for itself. It is deal certainty,” Woo said.
“What this customer consortium means is that it will provide steady funds to Toshiba to advance their R&D [research and development]. At the same time, it’s a guarantee there will be more customers lining up to buy their products when they increase their capacity or have better products,” he added.
Toshiba is still negotiating with three groups in the auction of its most valuable business, after failing to secure a final deal with the preferred bidder it selected in June.
The effort has been hampered by political opposition and litigation from partner Western Digital Corp.
Japanese government officials have opposed selling the chip unit to Hon Hai because of the firm’s close ties to China.
CUSTOMER BID
Woo detailed the proposed ownership to make the case it is not a Chinese or even Taiwanese bid.
Hon Hai would hold 25 percent of the equity, Apple 20 percent, Kingston Technology Co 20 percent, Sharp 15 percent, Softbank 10 percent and Toshiba would keep 10 percent, he said.
“We just hope the board directors of Toshiba will make [a] decision on commercial terms, on business terms, on technology terms, rather than political terms,” the spokesman said.
The Bain-led group had previously submitted a ￥2.1 trillion (US$19.3 billion) bid, while the KKR-led consortium is offering about ￥2 trillion, according to people familiar with the matter.
Woo also made the case that Toshiba is risking its future by delaying.
Besides the risk of delisting, he said that Toshiba’s chip business will fall behind if it cannot make investments quickly.
He specifically pointed to Samsung Electronics Co’s announcement last month that it will invest US$7 billion on a new fabrication facility in Xian, China, as a warning shot for Toshiba.
Samsung is the world’s largest producer of memory chips.
“You are jeopardizing your future, you are jeopardizing your competitiveness,” Woo said.
The Hon Hai-led group consists of customers that he said will help create long-term, stable demand for memory chips, while the other consortiums are led by bankers who will look to cash out, he said.
“We are offering something that I don’t think anyone can refuse,” Woo said.
The Fair Trade Commission’s (FTC) ongoing review of Grab Holdings Ltd’s US$600 million acquisition of Foodpanda Taiwan’s operations, announced on March 23, has taken on fresh urgency as industry experts warn that the transaction could embed significant Chinese cybersecurity vulnerabilities into Taiwan’s digital infrastructure through Grab’s deep ties to autonomous-driving firm WeRide (文遠知行). Less than 16 months after the FTC blocked Uber Eats’ direct attempt to acquire Foodpanda Taiwan — citing potential combined market shares of 80 to 90 percent — the emergence of Grab as the buyer has prompted questions about whether the same competitive harm is simply being rerouted
POWER BUILDUP: Powered by Nvidia’s B200 Blackwell chips, the data center would support MediaTek’s computing power demand and business growth, the company said Smartphone chip designer MediaTek Inc (聯發科) yesterday launched a new artificial intelligence (AI) data center with a maximum capacity of 45 megawatts to meet its rising demand for computing power required to develop new advanced chips for AI applications. The company has completed the first-phase computing power buildup at the data center in Miaoli County’s Tongluo Township (銅鑼), providing 15 megawatts of capacity to support its research and development (R&D) capabilities, despite an industrywide shortage of key components, MediaTek said. Supply constraints have plagued a wide range of key components, including memory chips, solid-state drives, power supply units and central
IMAGE SENSORS: The Japanese company would be the controlling shareholder of the venture, with development and production lines to be set up in Kumamoto Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it has signed a non-binding memorandum of understanding (MOU) with Sony Semiconductor Solutions Corp to create a joint venture to develop and produce next-generation images sensors. The partnership seeks to explore and address emerging opportunities in physical artificial intelligence (AI) applications, such as automotive and robotics, paving the way for innovations and expanded technological advancements, TSMC said in a statement. Sony would be the majority and controlling shareholder of the joint venture, the statement said, adding that the company would set up development and production lines in its newly constructed fab in Kumamoto Prefecture’s
The nation’s foreign exchange reserves climbed back above US$600 billion at the end of last month, as investment gains, currency valuation effects and renewed foreign inflows offset volatility seen earlier in the month, the central bank said yesterday. Reserves stood at US$602.49 billion, up US$5.6 billion from the previous month, the central bank said. The rebound reflected returns on reserve assets, fluctuations in major currencies against the US dollar and the central bank’s market operations aimed at maintaining orderly trading conditions, Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) said. Financial markets were volatile early last month, with foreign investors recording net purchases
RSS