Japan: Foxconn could bid up to $27 billion for Toshiba’s chip business

Foxconn Technology of Taiwan has told Toshiba that it is ready to pay as much as 3 trillion yen ($27 billion) for Toshiba’s computer-chip business, people familiar with the matter said, another bold bid for a pillar of Japan’s high-tech industry.

The Taiwanese company, the world’s largest electronics contract manufacturer, used a similar strategy last year to win control of Sharp. It put forth a bid price well beyond what others were offering and ultimately beat out a Japanese government-backed investment fund.

This latest bid by Foxconn, formally known as Hon Hai Precision Industry, could put the Japanese government in a tough spot. Some in the government are hoping to see a Japanese company or a joint US-Japan team take the prized Toshiba asset because they see the chip business as strategic, say people familiar with the matter. However, it will be hard for financially strapped Toshiba to turn down extra cash if Foxconn has the highest bid.

Full Content: Market Watch

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