Apple considers bidding for big stake in Toshiba chip business

Apple Inc. is considering teaming up with its supplier Foxconn to bid for Toshiba Corp.’s semiconductor business, Japanese public broadcaster NHK reported on Friday—the latest twist in the sale of the world’s second-biggest flash memory chipmaker.

The US tech giant is considering investing at least several billion dollars to take a stake of more than 20% as part of a plan that would have Toshiba keep a partial holding so the business remains under US and Japanese control, NHK reported, citing unidentified sources.

The idea would be to allay Japanese government concerns about any transfer of sensitive technology to investors it deems a potential risk to national security, the broadcaster said.

Apple was not immediately available to comment. Taiwan’s Foxconn declined to comment. A Toshiba spokesman said he could not comment on specific transactions.

Foxconn, which participated in the first round of the chip sale auction, has been considered a national security risk due to its ties with China. The bulk of Apple’s iPhones are made at Foxconn’s extensive manufacturing base there.

NHK said Apple wants Foxconn to own a stake of around 30% of Toshiba’s chip business.

An investment by Apple would be its first direct stake in a major global memory chipmaker.