April 18, 2017 2:00 pm JST
Exclusive

Foxconn eyes involving Sharp in Toshiba chip unit bidding

Adding Japanese arm to team could ensure smoother negotiations

OSAKA -- Hon Hai Precision Industry, now the parent of Japanese electronics giant Sharp, is considering including the Japanese unit in its bidding team attempting to buy Toshiba's spun-off chipmaking unit, The Nikkei learned Tuesday.

Hon Hai, also known as Foxconn, is believed to have already asked SoftBank Group of Japan and American tech giant Apple to join it in the bidding.

Hon Hai's keenness on Toshiba's chip business has raised concerns that Japanese technology could drain out to China or Taiwan. The Taiwanese iPhone assembler appears to be trying to fend off such concerns by involving the Japanese unit, more than 60% of which is owned by Foxconn, in the bidding, to ensure that negotiations with Toshiba go smoothly.

Hon Hai is believed to have successfully passed the first round of the bidding process with an offer of some 3 trillion yen ($27.5 billion). Toshiba plans to close the second round of bidding in mid-May and select bidders for priority negotiations. Hon Hai has not yet finalized its offer details.

In addition to its signature liquid crystal displays, Sharp is committed to enhancing production of camera parts for smartphones. Acquiring Toshiba's competitive memory chip business, which supplies parts for iPhones, will be an advantage for the Hon Hai group to expand business opportunities.

Toshiba seeks to sell the business for 2 trillion yen or so to fill the hole left in its finances by massive losses in its U.S. nuclear operations.

Participants in the first bidding round also included Western Digital of the U.S. and SK Hynix of South Korea, as well as U.S. chipmaker Broadcom.

U.S. investment funds, such as Silver Lake Partners, were also reported to have submitted bids.

Shares in Sharp ended the day up nearly 6% at 390 yen per share. The shares hit an intraday high of 394 yen shortly after the news broke.

(Nikkei)

Sharp shares updated at 4:30 pm JST

Asia300

Hon Hai Precision Industry Co., Ltd.

Taiwan

Market(Ticker): TAI(2317)
Sector:
Industry:
Electronic Technology
Computer Peripherals
Market cap(USD): 65,731.17M
Shares: 17,328.73M

Sharp Corp.

Japan

Market(Ticker): TKS(6753)
Sector:
Industry:
Consumer Durables
Electronics/Appliances
Market cap(USD): 20,538.16M
Shares: 6,119.52M

Toshiba Corp.

Japan

Market(Ticker): TKS(6502)
Sector:
Industry:
Consumer Durables
Electronics/Appliances
Market cap(USD): 11,767.32M
Shares: 4,237.60M

SoftBank Group Corp.

Japan

Market(Ticker): TKS(9984)
Sector:
Industry:
Technology Services
Information Technology Services
Market cap(USD): 87,876.74M
Shares: 1,100.66M
Asia300

SK hynix, Inc.

South Korea

Market(Ticker): KRX(000660)
Sector:
Industry:
Electronic Technology
Semiconductors
Market cap(USD): 42,957.16M
Shares: 728.00M

Get Insights on Asia In Your Inbox

To read the full story, Subscribe or Log in

Get your first month for $0.99

Redeemable only through the Subscribe button below

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

Resubscribe now to continue reading.
BEST OFFER:
Only US$ 9.99 per month for a full-year subscription

To read the full story, Subscribe or Log in

Once subscribed, you can…

  • Read all stories with unlimited access (5 articles per month without subscription)
  • Use our smartphone and tablet apps

To read the full story, Subscribe or Log in

3 months for $9
SUBSCRIBE TODAY

Take advantage of this limited offer.
Subscribe now to get unlimited access to all articles.

To read the full story, Update your account

We could not renew your subscription.
You need to update your payment information.