‘Foxconn not favoured due to close ties with China’
Taiwan’s Foxconn, the world’s largest contract electronics maker, is not a favoured bidder for Toshiba Corp’s memory chip business due to its close ties with China, said sources with direct knowledge of the deal.
The Japanese government was worried that selling to bidders close to China might lead to the transference of key technology, said the sources.
Toshiba was aware of the government’s wishes and “will take into account how close bidders are to China in the selection”, said one of the sources, adding that Foxconn had production lines in China.
Toshiba is considering selling the majority — or all — of its marquee flash-memory chip business, as it seeks to make up for a writedown from its United States nuclear unit Westinghouse.
It was valuing its chip business at least 1.5 trillion yen (RM50.53 billion), said people familiar with the matter.
Meanwhile, Westinghouse had brought in bankruptcy attorneys from law firm Weil Gotshal & Manges LLP, said sources.
The move comes after a US$6.3 billion (RM28.1 billion) writedown at Westinghouse wiped out Toshiba’s shareholder equity.
A Chapter 11 bankruptcy filing by Westinghouse in the United States could help limit Toshiba’s losses, said two people.