Taiwan's Foxconn 'definitely bidding' for Toshiba chip business

Wed Mar 1, 2017 11:33am EST
 
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By Sijia Jiang

HONG KONG (Reuters) - Taiwan's Foxconn (2317.TW: Quote), the world's largest contract electronics maker, is "definitely bidding" for the chip business of Japan's Toshiba Corp (6502.T: Quote) and is "very confident" it can buy into it, company founder Terry Gou said on Wednesday.

Gou was speaking as Foxconn, formally known as Hon Hai Precision Industry Co Ltd, broke ground for a 61 billion yuan ($8.87 billion) flat-screen display factory in Guangzhou province, southern China.

Toshiba is considering selling the majority - or all - of its marquee flash-memory chip business, as it seeks to make up for a $6.3 billion writedown from its nuclear operations.

Gou declined to say how much of the Japanese company's chip business Foxconn was interested in.

"I cannot say we are for sure getting it, but we are very confident. We are also very sincere," Gou said. He later told Reuters that Foxconn was "definitely bidding" for Toshiba.

"Money should not be the only thing (for Toshiba) to consider... We can help its technology to be sold in products all over the world. That is Foxconn's advantage."

Gou said Foxconn was open to teaming up with partners on any bid for Toshiba's chip business, adding anything was possible.

Toshiba wants to raise at least 1 trillion yen ($8.8 billion) in part by selling most of its flash memory chip business, seeking to create a buffer for any fresh financial problems, a person with knowledge of the matter previously told Reuters.   Continued...

 
Foxconn, formally known as Hon Hai Precision Industry Co Ltd, breaks ground for a 61 billion yuan ($8.87 billion) flat-screen display factory in Guangzhou, Guangdong province, China, March 1, 2017. REUTERS/Sijia Jiang