SK hynix Bids for Stake in Toshiba's Memory Chip Business
SK hynix Inc. said Tuesday it has submitted a non-binding bid to acquire a stake in Toshiba's memory chip business, adding itself to a long list of bidders that reportedly includes Foxconn, Micron and Western Digital .
SK hynix submitted a bid to acquire a 20-percent stake in Toshiba's memory business, with a deal expected to cost between 2 trillion won (US$1.8 billion) and 3 trillion won.
According to unconfirmed reports, the bidders for Toshiba's memory business include Micron Technology; Western Digital; Permira of Europe; and U.S. investment fund Bain Capital. The Asahi Shimbun reported on Tuesday that Taiwan-based electronics manufacturing giant Hon Hai Precision Industry Co. is also in the list of bidders.
Canon, the semiconductor equipment partner to Toshiba that was considered the most likely candidate, has not participated in the bidding.
And world's biggest maker of flash memory, Samsung Electronics, was also not among the bidders, the sources said.
Generally, selling the stake to an investment fund could speed up the process by eliminating anti-trust concerns surrounding other chipmakers, particularly Western Digital which is both a rival of Toshiba's and a business partner.
Acquiring Toshiba's memory chip business would help SK hynix expand its NAND flash memory business, as global demand for flash memory chips is roaring.
In January, Toshiba said it would sell about a 20 percent stake in its memory business as it struggles with multibillion dollar write-downs from its nuclear power business in the United States.
Last month, an affiliate of SK Group, which has SK hynix under its wing, said it agreed to buy a controlling stake in silicon wafer producer LG Siltron Inc.
SK hynix had previously announced it would build a new NAND chip plant in South Korea for 2.2 trillion won.
SK Hynix chalked up huge profits in the DRAM business, but failed to develop its competitiveness in the NAND chip area.