{"id":83488,"date":"2017-04-20T19:38:33","date_gmt":"2017-04-20T23:38:33","guid":{"rendered":"http:\/\/rbachnet.wwwmi3-ss40.a2hosted.com\/index.php\/"},"modified":"2024-02-03T11:00:49","modified_gmt":"2024-02-03T16:00:49","slug":"can-toshiba-stay-in-business","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/can-toshiba-stay-in-business\/","title":{"rendered":"Can Toshiba Stay in Business?"},"content":{"rendered":"<p><strong><a href=\"https:\/\/web.archive.org\/web\/20210301103000\/https:\/\/smallbusiness.chron.com\/rules-repeat-corporate-bankruptcy-filers-48240.html\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-96875 alignleft\" title=\"Can Toshiba Stay in Business?\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bankruptcy.jpg?resize=119%2C78&#038;ssl=1\" alt=\"Can Toshiba Stay in Business?\" width=\"119\" height=\"78\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bankruptcy.jpg?resize=150%2C98&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bankruptcy.jpg?resize=75%2C49&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bankruptcy.jpg?w=340&amp;ssl=1 340w\" sizes=\"auto, (max-width: 119px) 100vw, 119px\" \/><\/a>Updated 01\/31\/2024<\/strong> &#8211; On 12\/20\/2023 Toshiba ends its 74-year history as a listed company. Toshiba\u2019s new owner TBJH Inc., delisted the <a title=\"Toshiba's lurch from crisis to crisis since 2015\" href=\"https:\/\/www.reuters.com\/technology\/toshibas-lurch-crisis-crisis-since-2015-2021-11-11\/\" target=\"_blank\" rel=\"nofollow noopener\">scandal ridden<\/a> firm as part of the <a title=\"Announcement of the Results of the Tender Offer by TBJH Inc. for the Company Shares and Change of the Parent Company and the Largest Shareholder Among the Major Shareholders\" href=\"https:\/\/www.global.toshiba\/content\/dam\/toshiba\/ww\/ir\/corporate\/news\/20230921_1.pdf\" target=\"_blank\" rel=\"nofollow noopener\">acquisition agreement<\/a> (PDF). The deal structure is quite complex and involves a <a title=\"Japan Industrial Partners to acquire Toshiba for $15 billion\" href=\"https:\/\/www.datacenterdynamics.com\/en\/news\/japan-industrial-partners-to-acquire-toshiba-for-15-billion\/\" target=\"_blank\" rel=\"nofollow noopener\">web of subsidiaries<\/a>. Here\u2019s an explanation from Bing:<\/p>\n<ul>\n<li>TBJH Inc. is an indirect subsidiary of <a title=\"Japan Industrial Partners Inc.\" href=\"https:\/\/jipinc.com\/en\/\" target=\"_blank\" rel=\"nofollow noopener\">Japan Industrial Partners Inc.<\/a> (JIP).<\/li>\n<li>TBJH will be acquired by another JIP subsidiary, an investment fund called TB Investment Limited Partnership (TBLPS), through <a title=\"Brick Lane Partners\" href=\"https:\/\/www.bricklanedc.com\/\" target=\"_blank\" rel=\"nofollow noopener\">Brick Lane Partners<\/a>.<\/li>\n<li>TBJH Inc. acquired all of Toshiba Corporation\u2019s shares listed on the Tokyo and Nagoya Stock Exchanges.<\/li>\n<li>The shares of Toshiba Corporation were delisted on Dec. 20, 20232.<\/li>\n<li>The same amount of money as tender offer price <a title=\"Toshiba Plans to Go Private in $15 Billion Deal With Japan Investors\" href=\"https:\/\/www.wsj.com\/articles\/toshiba-announces-15-billion-plan-to-be-taken-private-b090f9fb\" target=\"_blank\" rel=\"nofollow noopener\">$15 Billion<\/a> (4,620 JPY per share) is scheduled to be delivered in April.<\/li>\n<\/ul>\n<p>This structure allowed TBJH to acquire the complete shareholding of Toshiba Corporation and take Toshiba private.<\/p>\n<p><a title=\"Japan Industrial Partners to acquire Toshiba for $15 billion\" href=\"https:\/\/www.datacenterdynamics.com\/en\/news\/japan-industrial-partners-to-acquire-toshiba-for-15-billion\/\" target=\"_blank\" rel=\"nofollow noopener\">TBLPS is made up<\/a> of four JIP funds, 17 Japanese businesses, and six Japanese financial institutions. The Related Fund is made up of JIP overseas cooperative funds and overseas funds including those from Japanese institutional investors.<\/p>\n<p style=\"text-align: center;\">&#8212;<\/p>\n<p><strong>Updated 06\/22\/2017<\/strong> &#8211; As predicted below, the <a href=\"https:\/\/www.nytimes.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>NYT<\/em><\/a> <a href=\"https:\/\/web.archive.org\/web\/20201112021708\/https:\/\/www.nytimes.com\/2017\/06\/21\/business\/dealbook\/toshiba-microchip-business-sale.html\" target=\"_blank\" rel=\"noopener noreferrer\">reports<\/a> that the Japanese government formed a coalition including the U.S. venture capital firm <a href=\"https:\/\/www.baincapital.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bain Capital<\/a> to buy Toshiba&#8217;s microchip division. Estimates are the Toshiba deal is worth approx. $20 Billion.<\/p>\n<p style=\"text-align: center;\">&#8212;<\/p>\n<p><strong><a href=\"https:\/\/www.toshiba.co.jp\/worldwide\/\" target=\"_blank\" rel=\"noopener noreferrer\">Toshiba<\/a><\/strong> is being driven to <strong>sell off<\/strong> its crown jewel, its <strong>microchip business<\/strong>, to stabilize the international giant. The <a href=\"https:\/\/www.nytimes.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em>New York Times<\/em><\/a> <a href=\"https:\/\/web.archive.org\/web\/20211028173243\/https:\/\/www.nytimes.com\/2017\/04\/11\/business\/dealbook\/toshiba-foxconn-chips-deal.html\" target=\"_blank\" rel=\"noopener noreferrer\">reports<\/a> that the stalwart of <a title=\"Japan\" href=\"https:\/\/data.worldbank.org\/\" target=\"_blank\" rel=\"geolocation nofollow noopener noreferrer\">Japan<\/a>\u2019s postwar rise as a global industrial giant warned that it has doubts over whether it could stay in business. In a filing in <a href=\"https:\/\/www.google.com\/maps\/place\/35%C2%B041'00.0%22N+139%C2%B046'00.0%22E\/@35.9993468,138.401295,1422278m\/data=!3m1!1e3!4m5!3m4!1s0x0:0x0!8m2!3d35.6833333!4d139.7666667\" target=\"_blank\" rel=\"noopener noreferrer\">Japan<\/a>, Toshiba said it <strong>wrote off more than $6 billion<\/strong> connected to <a href=\"https:\/\/web.archive.org\/web\/20220607082210\/https:\/\/www.nytimes.com\/2017\/03\/29\/business\/westinghouse-toshiba-nuclear-bankruptcy.html\" target=\"_blank\" rel=\"noopener noreferrer\">Westinghouse Electric&#8217;s troubled nuclear reactor projects<\/a> in the United States, which had created \u201c<strong>substantial uncertainty<\/strong>\u201d over its ability to continue as a going concern.<\/p>\n<p><a href=\"http:\/\/www.toshiba.com\/tai\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-96877 \" title=\"Toshiba logo\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Toshiba_logo.gif?resize=120%2C57&#038;ssl=1\" alt=\"Toshiba logo\" width=\"120\" height=\"57\" \/><\/a>The Toshiba microchip division is the number two <strong>global provider<\/strong> of <a title=\"Flash memory\" href=\"http:\/\/en.wikipedia.org\/wiki\/Flash_memory\" target=\"_blank\" rel=\"wikipedia nofollow noopener noreferrer\">NAND flash memory<\/a>. <a title=\"Chip Hall of Fame: Toshiba NAND Flash Memory\" href=\"https:\/\/spectrum.ieee.org\/chip-hall-of-fame-toshiba-nand-flash-memory\" target=\"_blank\" rel=\"nofollow noopener\">NAND <strong>flash memory<\/strong><\/a>\u00a0is a type of non-volatile storage technology that does not need power to keep data. Flash memory\u00a0is\u00a0electronic\u00a0(solid-state)\u00a0non-volatile\u00a0computer storage\u00a0medium that can be electrically erased and reprogrammed.<\/p>\n<p>Toshiba originally <strong>invented flash memory<\/strong> in the early 1980s from\u00a0<a href=\"http:\/\/whatis.techtarget.com\/definition\/EEPROM-electrically-erasable-programmable-read-only-memory\" target=\"_blank\" rel=\"noopener noreferrer\">EEPROM<\/a> (electrically erasable programmable read-only memory). They introduced it to the market in 1984. Called flash memory, after the flash on a camera, the chips have become an essential building block<strong>\u00a0of the modern electronics<\/strong> industry.<\/p>\n<p><a href=\"https:\/\/nuclearstreet.com\/nuclear_power_industry_news\/b\/nuclear_power_news\/archive\/2017\/03\/24\/toshiba-working-on-bankruptcy-filing-for-westinghouse-032501#.WPfz8Y61vPA\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-96881 \" title=\"Westinghouse logo\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Westinghouse-logo.png?resize=71%2C71&#038;ssl=1\" alt=\"Westinghouse logo\" width=\"71\" height=\"71\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Westinghouse-logo.png?resize=150%2C150&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Westinghouse-logo.png?resize=75%2C75&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Westinghouse-logo.png?w=240&amp;ssl=1 240w\" sizes=\"auto, (max-width: 71px) 100vw, 71px\" \/><\/a>The two main types of flash memory are named after the\u00a0<a href=\"http:\/\/whatis.techtarget.com\/definition\/logic-gate-AND-OR-XOR-NOT-NAND-NOR-and-XNOR\" target=\"_blank\" rel=\"noopener noreferrer\">NAND\u00a0and\u00a0NOR<\/a>\u00a0logic gates. The individual flash memory cells have internal characteristics similar to those of the corresponding gates.<\/p>\n<p>Where\u00a0<a title=\"EPROM\" href=\"http:\/\/en.wikipedia.org\/wiki\/EPROM\" target=\"_blank\" rel=\"wikipedia nofollow noopener noreferrer\">EPROMs<\/a>\u00a0had to be completely erased before being rewritten, <a href=\"https:\/\/web.archive.org\/web\/20210412062404\/http:\/\/www.flash25.toshiba.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">NAND-type flash memory<\/a> may be written and read in blocks (or pages) that are generally smaller than the entire device. NOR-type flash allows a single machine word (byte) to be written\u2014an erased location\u2014read independently.<\/p>\n<p><a href=\"https:\/\/web.archive.org\/web\/20200910172540\/https:\/\/gadgets.ndtv.com\/mobiles\/news\/samsung-unveils-first-emmc-51-storage-for-smartphones-and-tablets-662353\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-96885 \" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/NANDFlashMemory-e1562372014333-150x143.jpg?resize=117%2C112&#038;ssl=1\" alt=\"\" width=\"117\" height=\"112\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/NANDFlashMemory-e1562372014333.jpg?resize=150%2C143&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/NANDFlashMemory-e1562372014333.jpg?resize=75%2C71&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/NANDFlashMemory-e1562372014333.jpg?w=443&amp;ssl=1 443w\" sizes=\"auto, (max-width: 117px) 100vw, 117px\" \/><\/a>The NAND type operates primarily in\u00a0<strong>memory cards,\u00a0<a title=\"USB flash drive\" href=\"http:\/\/en.wikipedia.org\/wiki\/USB_flash_drive\" target=\"_blank\" rel=\"wikipedia nofollow noopener noreferrer\">USB flash drives<\/a><\/strong>, some solid-state drives, and similar products for general storage and transfer of data. NAND or NOR flash memory is also often used to store configuration data in many digital products, a task previously made possible by EEPROM or battery-powered\u00a0static RAM. One key disadvantage of flash memory is that it can only endure a <a href=\"https:\/\/web.archive.org\/web\/20171031171146\/http:\/\/searchsolidstatestorage.techtarget.com:80\/definition\/NAND-flash-wear-out\" target=\"_blank\" rel=\"noopener noreferrer\">relatively small number of write cycles<\/a> in a specific block.<\/p>\n<h3>Makers of flash memory chips<\/h3>\n<p><span style=\"font-family: sans-serif; font-size: small;\"><a title=\"Samsung Electronics Co.\" href=\"http:\/\/www.samsung.com\/us\/\" target=\"_blank\" rel=\"noopener noreferrer\">Samsung Electronics Co.<\/a> (<a title=\"KS : 005930\" href=\"http:\/\/www.bloomberg.com\/quote\/005930:KS\" target=\"_blank\" rel=\"noopener noreferrer\">005930<\/a>) is the biggest maker of flash memory chips, followed by Toshiba, <a title=\"SK Hynix\" href=\"http:\/\/www.skhynix.com\" target=\"_blank\" rel=\"homepage nofollow noopener noreferrer\">SK Hynix<\/a>, and U.S.-based <a href=\"https:\/\/www.micron.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Micron Technology<\/a> (<a href=\"https:\/\/www.tradingview.com\/symbols\/NASDAQ-MU\/\" target=\"_blank\" rel=\"noopener noreferrer\">MU<\/a>). Toshiba <a href=\"https:\/\/web.archive.org\/web\/20170519203315\/http:\/\/toshiba.semicon-storage.com:80\/ap-en\/product\/memory\/nand-flash.html?\" target=\"_blank\" rel=\"noopener noreferrer\">manufactures<\/a> its NAND Flash Memories at its Yokkaichi Operations to maintain quality.<br \/>\n<\/span><\/p>\n<p><a href=\"http:\/\/www.nationwideforeclosures.com\/bidding-service\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-96889 \" title=\"Up to 12 companies have approached Toshiba with proposals\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bidders.jpg?resize=120%2C120&#038;ssl=1\" alt=\"Up to 12 companies have approached Toshiba with proposals\" width=\"120\" height=\"120\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bidders.jpg?resize=150%2C150&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bidders.jpg?resize=75%2C75&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bidders.jpg?resize=768%2C768&amp;ssl=1 768w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bidders.jpg?w=1024&amp;ssl=1 1024w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/bidders.jpg?w=960&amp;ssl=1 960w\" sizes=\"auto, (max-width: 120px) 100vw, 120px\" \/><\/a>A sale of Toshiba\u2019s chip business, while offering the business a lifeline, would take away its most successful business \u2014 and, more broadly, would represent a<strong> shift of a major technology away from Japan<\/strong>, depending on the buyer. The Toshiba sale is still in its early stages, and the <em>NYT<\/em> says as many as 12 companies have approached Toshiba with proposals. <a href=\"http:\/\/appleinsider.com\/articles\/17\/02\/22\/apple-foxconn-tsmc-consider-swooping-in-on-toshibas-flash-memory-business\" target=\"_blank\" rel=\"noopener noreferrer\">Reports<\/a> are that Toshiba is asking bidders to value its operations at about <strong>$17.6 billion<\/strong> (<a href=\"https:\/\/web.archive.org\/web\/20220807162803\/https:\/\/asia.nikkei.com\/Business\/Deals\/Toshiba-seeks-bids-valuing-chip-unit-at-2tn-yen-or-more\" target=\"_blank\" rel=\"noopener noreferrer\">2 trillion yen)<\/a>, and make at least a 50 percent investment.<\/p>\n<p>One of the better-known suitors is <strong><a title=\"Foxconn\" href=\"http:\/\/www.foxconn.com\/\" target=\"_blank\" rel=\"homepage nofollow noopener noreferrer\">Hon Hai Precision Industry<\/a><\/strong>, also known as Foxconn.<strong> Foxconn<\/strong> is <span style=\"font-family: sans-serif; font-size: small;\">the <\/span>assembler of<strong> <a title=\"Apple Computers\" href=\"http:\/\/www.apple.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Apple<\/a> (<a title=\"NASDAQ : AAPL\" href=\"https:\/\/www.tradingview.com\/symbols\/NASDAQ-AAPL\/\" target=\"_blank\" rel=\"noopener noreferrer\">AAPL<\/a>) iPhones<\/strong> and is the <span style=\"font-family: sans-serif; font-size: small;\">world&#8217;s largest contract electronics maker<\/span>. Foxconn is based in Taiwan but performs most of its manufacturing in mainland <strong>China<\/strong>. According to the article, Foxconn could pay billions to buy the business.<\/p>\n<p><a href=\"https:\/\/web.archive.org\/web\/20190922155554\/http:\/\/www.financialramblings.com:80\/archives\/hsa-transfer-and-rollover-rules\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-96892 \" title=\"Offered $27 billion\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wheelbarrowofmoney.jpg?resize=112%2C84&#038;ssl=1\" alt=\"Offered $27 billion\" width=\"112\" height=\"84\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wheelbarrowofmoney.jpg?resize=150%2C113&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wheelbarrowofmoney.jpg?resize=75%2C56&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wheelbarrowofmoney.jpg?w=400&amp;ssl=1 400w\" sizes=\"auto, (max-width: 112px) 100vw, 112px\" \/><\/a><a href=\"http:\/\/www.reuters.com\/article\/us-toshiba-accounting-apple-idUSKBN17G085\" target=\"_blank\" rel=\"noopener noreferrer\">Sources<\/a> told Japanese public broadcaster NHK the first round of the Toshiba auction drew 10 offers. Toshiba has narrowed the field of bidders for its chip unit to four: U.S. chipmaker <strong><a title=\"Broadcom\" href=\"http:\/\/www.broadcom.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Broadcom<\/a><\/strong> (<a href=\"https:\/\/www.tradingview.com\/symbols\/NASDAQ-AVGO\/\" target=\"_blank\" rel=\"noopener noreferrer\">AVGO<\/a>), a private equity firm <a href=\"http:\/\/www.silverlake.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Silver Lake Partners<\/a> which <a href=\"http:\/\/www.telegraph.co.uk\/business\/2017\/04\/14\/apple-mulls-throwing-weight-behind-215bn-bid-toshiba-chip-business\/\" target=\"_blank\" rel=\"noopener noreferrer\">reportedly<\/a> offered\u00a0$18 billion; <strong><a href=\"https:\/\/web.archive.org\/web\/20210703051125\/https:\/\/www.skhynix.com\/eng\/index.jsp\" target=\"_blank\" rel=\"noopener noreferrer\">SK Hynix<\/a><\/strong>; <strong><a title=\"Western Digital\" href=\"http:\/\/www.wdc.com\/en\/\" target=\"_blank\" rel=\"noopener noreferrer\">Western Digital<\/a><\/strong> (<a title=\"NASDAQ : WDC)\" href=\"https:\/\/www.tradingview.com\/symbols\/NASDAQ-WDC\/\" target=\"_blank\" rel=\"noopener noreferrer\">WDC<\/a>); and <a title=\"Foxconn\" href=\"http:\/\/www.foxconn.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Foxconn<\/a> (<a title=\"HK:2038\" href=\"https:\/\/www.google.com\/finance?q=TPE:2354\" target=\"_blank\" rel=\"noopener noreferrer\">2354<\/a>), reports say Foxconn offered $27 billion.<\/p>\n<p>Apple is considering teaming up with its supplier Foxconn to bid for the Toshiba semiconductor business, Japan\u2019s NHK reported. Apple is considering investing at least several billion dollars to take a stake of more than 20 percent as part of a plan that would have Toshiba keep a partial holding so the business remains under U.S. and Japanese control, NHK reported.<\/p>\n<h3>Japanese government may save Toshiba<\/h3>\n<p>The authors point out Toshiba&#8217;s situation is a remarkable turnabout for Japan, a country that <strong>once controlled the majority of microchip markets<\/strong>. In the past Japanese companies have banded together to rescue flailing domestic rivals and not let them fold or be acquired by foreigners.<\/p>\n<p><a href=\"https:\/\/web.archive.org\/web\/20210517114349\/https:\/\/www.mintpressnews.com\/wall-street-curing-diseases-bad\/241176\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-96896 size-medium\" title=\"Bankers\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wall-street-bankers.jpg?resize=150%2C112&#038;ssl=1\" alt=\"Bankers\" width=\"150\" height=\"112\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wall-street-bankers.jpg?resize=150%2C112&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wall-street-bankers.jpg?resize=75%2C56&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wall-street-bankers.jpg?resize=768%2C575&amp;ssl=1 768w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wall-street-bankers.jpg?resize=1024%2C767&amp;ssl=1 1024w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wall-street-bankers.jpg?w=1200&amp;ssl=1 1200w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/wall-street-bankers.jpg?w=960&amp;ssl=1 960w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a>The article speculates that the Japanese government may cobble together a \u201cteam Japan\u201d offer, but the response from potential participants \u2014 who would have to explain the spending to shareholders \u2014 has been tepid. \u201cIt is fundamentally unthinkable that the Industry Ministry would intervene and take some kind of action,\u201d Hiroshige Seko, the industry minister, said at a news conference, further dampening expectations.<\/p>\n<p>Mark Newman, an analyst at Sanford C. Bernstein, argued in a report that Toshiba\u2019s memory business remained valuable enough that selling it amounted to \u201c<strong>selling the crown jewels to pay next month\u2019s rent<\/strong>.\u201d<\/p>\n<p><a href=\"https:\/\/web.archive.org\/web\/20230528123722\/https:\/\/apjjf.org\/2013\/11\/32\/Mark-Selden\/3981\/article.html\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-96900 \" title=\"Apple teaming up with its supplier Foxconn to bid for Toshiba\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/aafoxconn1.jpg?resize=110%2C60&#038;ssl=1\" alt=\"Apple teaming up with its supplier Foxconn to bid for Toshiba\" width=\"110\" height=\"60\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/aafoxconn1.jpg?resize=150%2C82&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/aafoxconn1.jpg?resize=75%2C41&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/aafoxconn1.jpg?resize=768%2C421&amp;ssl=1 768w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/aafoxconn1.jpg?w=800&amp;ssl=1 800w\" sizes=\"auto, (max-width: 110px) 100vw, 110px\" \/><\/a>Japanese politicians and industry leaders have voiced concerns over <strong>Chinese investors\u2019 buying advanced chip production technology; semiconductors and memory<\/strong> are a major priority of China\u2019s industrial policy. That could hinder any deal with Foxconn, said Mr. Newman, of Sanford C. Bernstein.<\/p>\n<p>The worry is that Foxconn \u201cwould build huge fabs in China,\u201d Mr.\u00a0Bernstein said, referring to semiconductor fabrication plants. \u201cThe <strong>jobs would move to China from Japa<\/strong><strong>n<\/strong>, and furthermore China would go after market share at the expense of <strong>c<\/strong><strong>rushing industry economics, so the U.S., Taiwan, Korea, Japan<\/strong> all get hurt substantially by this arrangement.\u201d Foxconn has been successful in attracting subsidies from the Chinese government to build large-scale production facilities in China.<\/p>\n<p>The article speculates that Foxconn could take the Toshiba technology and manufacture it more cheaply in China. Such a move could drive down pricing for memory, a boon for Apple and low-cost Chinese smartphone makers. But it would also propel <strong>China<\/strong> forward in its long push to become <strong>internationally competitive in semiconductors<\/strong>. Mr. Newman has warned that competition in NAND chips could heat up next year, creating the possibility of oversupply and putting more pressure on Toshiba\u2019s ability to put in effect next-generation technologies.<br \/>\n<span style=\"font-family: sans-serif; font-size: small;\"><br \/>\n<\/span><\/p>\n<h6>Related articles<\/h6>\n<ul>\n<li><a href=\"https:\/\/web.archive.org\/web\/20170621094613\/http:\/\/www.japantimes.co.jp:80\/news\/2017\/04\/12\/business\/corporate-business\/forming-japanese-consortium-toshiba-chip-unit-seen-difficult-task\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Forming Japanese consortium for Toshiba chip unit seen as difficult task<\/a> (japantimes.co.jp)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><em><a title=\"Ralph Bach\" href=\"https:\/\/rbach.net\/index.php\/new-resume\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ralph Bach<\/a>\u00a0has been in IT long enough to know better and has blogged from his\u00a0<a title=\"Bach Seat\" href=\"https:\/\/rbach.net\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bach Seat<\/a> about IT, careers, and anything else that catches his attention since 2005. You can follow him on <a class=\"broken_link\" href=\"http:\/\/www.linkedin.com\/in\/rb48334\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">LinkedIn<\/a>,\u00a0<a href=\"https:\/\/www.facebook.com\/ralph.bach.14\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/rbach48334\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>. Email the Bach Seat\u00a0<a href=\"mailto:\/\/bach.seat@gmail.com\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Flash memory maker Toshiba is taking bids from Broadcom, PE firm Silver Lake Partners,  SK Hynix; Western Digital, Foxconn to stay alive<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[2990,420,101,1885,169,32,35,2897,2899,2894,289,145,304,2898,2895,1726,1782,143],"class_list":["post-83488","post","type-post","status-publish","format-standard","hentry","category-business","tag-2990","tag-aapl","tag-apple","tag-brcm","tag-broadcom","tag-business","tag-china","tag-dram","tag-dynamic-random-access-memory","tag-flash-memory","tag-foxconn","tag-hard-disk-drive","tag-iphone","tag-nand","tag-sk-hynix","tag-toshiba","tag-wdc","tag-western-digital"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/83488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/comments?post=83488"}],"version-history":[{"count":26,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/83488\/revisions"}],"predecessor-version":[{"id":130542,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/83488\/revisions\/130542"}],"wp:attachment":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/media?parent=83488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/categories?post=83488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/tags?post=83488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}