Foxconn out of running for Toshiba business

Taiwan’s Foxconn, the world’s largest contract electronics maker, is not a favoured bidder for Toshiba memory chip business because it is too close to China.

Apparently the Japanese government has told Tosh that flogging its flash business to China  would be opposed because it means the transference of key technology.

Foxconn has plants in China, and the Japanese fear that putting the tech close to the Chinese would result in the tech leaking out due to industrial espionage and internal corruption.

Toshiba, the second-biggest NAND chip producer after Samsung, wants to sell the majority – or all – of its marquee flash-memory chip business, as it seeks to make up for a $6.3 billion writedown from its US nuclear unit Westinghouse.

Toshiba is valuing its chip business at $13.1 billion, people familiar with the matter have said. Initial bids are due by the end of the month.

Foxconn said last week it was “definitely bidding” for Toshiba’s chip business and that it was “very confident” it could buy into it.

Yesterday the Nikkei business daily reported that Foxconn has approached   SK Hynix to explore a joint bid.

TSMC, another Taiwanese firm and the world’s largest contract chipmaker, is also deeply interested in Toshiba’s chip unit.