Japan: Apple looking at $3b stake in Toshiba’s chip unit

Bain Capital’s effort to acquire Toshiba’s memory chip business may be in for a huge boost as Bloomberg reports Apple is now discussing a US$3 billion stake in the bid.

The strategic importance of chips for Apple is clear: only a handful of companies make the highest-end technology, and one of them is Samsung.

The investment would give Apple “better control of a critical supply chain component,” said Nehal Chokshi, the managing director of consumer and enterprise technology at Maxim Group. Chokshi rates Apple stock a buy. “Having a diversified supply chain is a driver” for a potential investment, he said.

The move has an added benefit of blocking Western Digital’s play to acquire the unit with KKR, a development which would see more power concentrated within the chip industry.

The precise composition of the Bain group is still in flux and may change, according to Bloomberg. There is no guarantee the consortium will be able to reach a final agreement with Toshiba.

Full Content: Bloomberg

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