New article: FOXCONN IN BIDDING RACE FOR TOSHIBA'S MEMORY CHIP BUSINESS read more at here http://www.spinonews.com/index.php/technology/item/3287-foxconn-in-bidding-race-for-toshiba-s-memory-chip-business

The Taiwanese electronics manufacturer behind supply of iPhones and iPads to Apple, is expected to bid for and acquire Toshiba’s memory chip business at US $27 billion.

Toshiba having its manufacturing base with all of its plants in Japan is quite commonly associated with manufacturing of NAND flash and memory chips. But chip manufacturing in Japan has slipped as rivals in South Korea and China gain in strength.

The news was first reported by the Wall Street Journal. Foxconn is the latest runner in this race as few other companies like SK Hynix and equity investor Silver Lake are also interested in acquiring Toshiba’s chip business.

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If Foxconn acquires Toshiba, it would give Toshiba the scale it needs to advance in the manufacturing of memory and storage as Toshiba is lagging behind Samsung, especially in storage and hasn't advanced its manufacturing processes as quickly.

Toshiba storage products can be purchased directly, but it also supplies and makes flash products for other hardware companies. The divestiture of its manufacturing assets could have an impact on SanDisk, which is a part of Toshiba.

A couple of months back, Toshiba had indicated about its intention to sell its memory business. The need to sell the assets amplified after its Westinghouse Electric nuclear power unit filed for bankruptcy in late March. Overall, Toshiba is expecting a decline in revenue and profits this financial.

On the other hand  Foxconn is gearing up globally with factories in North America, Asia, Europe, and South America. Last year, Foxconn targeted another major Japanese company Sharp and acquired a majority stake in it.

Japan still remains a technology powerhouse despite manufacturing assets dwindling. But last year, Japanese company SoftBank acquired ARM Holdings, which provides chip designs that go into many mobile devices.