• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechFortune 500

Apple and Dell Are Backing Foxconn’s Bid for Toshiba Chip Business

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
June 12, 2017, 7:25 AM ET

Apple and computing giant Dell will join a Foxconn-led consortium bidding for Toshiba’s highly prized chip unit, the CEO of the world’s largest contract electronics manufacturer told Reuters on Monday.

Terry Gou, Foxconn’s founder and chief executive, said U.S.-based Kingston Technology, a maker of memory products, would also be part of the bidding group, while Amazon.com was close to joining.

The Taiwanese firm is also in discussions with Alphabet’s Google, Microsoft, and Cisco Systems about their participation in the bid, he said.

He declined to comment on the total size of the offer or say how much Apple and other U.S. firms planned to invest.

“I can tell you Apple is in for sure,” Gou said in an interview, adding that its participation had been approved by the Chief Executive Tim Cook and Apple’s board of directors.

Toshiba is rushing to find a buyer for the world’s second-largest producer of NAND chips, which it values at $18 billion or more, to cover billions of dollars in cost overruns at its now-bankrupt U.S. nuclear business Westinghouse Electric.

Foxconn, however, has not been seen as a frontrunner for the unit due to its deep ties with China, where it manufactures much of its products. The Japanese government has said it will block any deal that would risk the transfer of key chip technology out of the country.

But Gou said that Foxconn-led consortium contained no Chinese capital and had the advantage of not inviting as much antitrust scrutiny as other suitors.

“The key is that we are all customers, we are users,” he said.

Foxconn, formally known as Hon Hai Precision Industry, and its Japanese unit Sharp would have a combined stake of not more than 40%, he added.

Representatives for Apple and the other U.S. firms named by Gou could not be immediately reached for comment outside of regular business hours. Sharp declined to comment.

FIERCE COMPETITION

Gou’s revelations of the Foxconn-led bid come as uncertainty

spikes over the make-up of the groups bidding in the hotly contest auction just days before Toshiba is due to announce a preferred bidder.

Western Digital plans to raise its offer for Toshiba’s semiconductor unit, a person familiar with the matter told Reuters over the weekend, in a last-ditch effort to clinch a deal.

The U.S. chipmaker is part of a consortium led by a Japanese government-backed fund and the group will present the new offer of 2 trillion yen ($18 billion) or more, the source said.

The laptops-to-nuclear conglomerate aims to name a winner for at a board meeting on June 15. Tokyo, however, has been asking Toshiba to postpone the decision as the government-led consortium has yet to finalize its proposal.

Get Data Sheet, Fortune’s daily tech newsletter.

Some sources have said that the state-backed fund, the Innovation Network of Japan, is also exploring a potential consortium with Bain Capital, though it is unclear what other firms would also be members of that group.

Western Digital has been seen by some sources as crucial to successful deal, as it jointly operates a key flash-memory chip plant with Toshiba in western Japan.

But Western Digital and Toshiba have been at loggerheads over the auction. Western Digital is pursuing an international arbitration claim that Toshiba has breached joint-venture contracts by entertaining outside bids.

Toshiba has favored a separate bid from U.S. chipmaker Broadcom, which has partnered with U.S. private equity firm Silver Lake to offer 2.2 trillion yen, people familiar with the matter have told Reuters.

About the Author
By Reuters
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Nvidia co-founder and CEO Jensen Huang is driving a squeeze of memory chips.
AISemiconductors
Wall Street thinks memory is AI’s golden ticket. Harvard’s chip expert warns: ‘Curves that just go to the sky with no end…never continue forever’
By Eva RoytburgMay 11, 2026
2 hours ago
Shark Tank’s Kevin O’Leary wants to build a massive $100 billion data center in rural Utah. Residents are revolting
AIData centers
Shark Tank’s Kevin O’Leary wants to build a massive $100 billion data center in rural Utah. Residents are revolting
By Marco Quiroz-GutierrezMay 11, 2026
4 hours ago
Santa Clara County is suing Meta over allegations it profited from scam advertisements that particularly targeted seniors and families
LawMeta
Santa Clara County is suing Meta over allegations it profited from scam advertisements that particularly targeted seniors and families
By Catherina GioinoMay 11, 2026
4 hours ago
Nvidia CEO Jensen Huang
Economyconstruction
Jensen Huang’s message to electricians and plumbers: ‘This is your time,’ as AI buildout leads to soaring demand for skilled trades
By Tristan BoveMay 11, 2026
6 hours ago
worker alone in empty office
Future of WorkTech
AI isn’t paying off in the way companies think. Layoffs driven by automation are failing to generate returns, study finds
By Jake AngeloMay 11, 2026
6 hours ago
The widow of a man killed in a Florida mass shooting is suing ChatGPT maker OpenAI, claiming it ‘knew this would happen’
LawOpenAI
The widow of a man killed in a Florida mass shooting is suing ChatGPT maker OpenAI, claiming it ‘knew this would happen’
By The Associated Press and Jeff MartinMay 11, 2026
7 hours ago

Most Popular

‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
Economy
‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
By Jacqueline MunisMay 10, 2026
1 day ago
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
Tech
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
By Sydney LakeMay 10, 2026
1 day ago
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
Success
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
By Orianna Rosa RoyleMay 9, 2026
2 days ago
Forget U.S. debt, China's total borrowing is in 'a league of its own'—much worse and deteriorating faster, analyst says
Economy
Forget U.S. debt, China's total borrowing is in 'a league of its own'—much worse and deteriorating faster, analyst says
By Jason MaMay 11, 2026
6 hours ago
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
Future of Work
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
By Jake AngeloMay 9, 2026
2 days ago
Microsoft’s CFO admits she joined the tech giant without even knowing her salary—and then missed her first day of work
Success
Microsoft’s CFO admits she joined the tech giant without even knowing her salary—and then missed her first day of work
By Preston ForeMay 11, 2026
7 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.