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Apple, Amazon, Google identified as bidders for Toshiba's NAND flash memory business

Three tech firms — Apple, Amazon, and Google — have reportedly joined the considerable list of bidders of Toshiba's NAND flash memory business, now on the market as Toshiba looks to raise $9 billion to cover losses at its U.S. nuclear unit, Westinghouse.

The new entrants' bidding prices are unknown, according to Japanese publication Yomiuri Shimbun, quoted by Reuters. On Friday however, two joint bidders — chipmaker Broadcom, and private equity firm Silver Lake Partners — were reported to have bid about $18 billion.

Other bidders are believed to include various financial investors as well as memory makers Micron, SK Hynix, and Western Digital, the latter of which already operates a chip plant with Toshiba in Japan. Both Micron and SK Hynix count Apple as a client.

Two other Apple partners, Foxconn and TSMC, have previously been rumored as bidders but could be out of the running because of Japanese national security concerns. Toshiba is in fact thought to be leaning towards U.S. companies, not only because of security but because going in that direction could ease dealings with the U.S. government over Westinghouse.

If Apple were to win a bid it would give the company a lock on memory supply for Macs, iPhones, iPads, and other devices, likely removing any production bottlenecks.

At the same time however it would have to deal with Toshiba's legacy clients, and either phase them out or enter the global memory business. The latter situation is unlikely, since memory supply isn't an area of Apple expertise and the company would have to sell chips to rival electronics makers. Apple normally keeps hardware as exclusive as possible — even some of its Beats audio gear, nominally platform-agnostic, now charges through Lightning instead of micro-USB.



19 Comments

macxpress 16 Years · 5913 comments

If I were Apple, I'd really try to snatch this up. This is a place where I think Apple should spend some money unless someone know's of some new technology coming soon that replaces NAND flash. 

randominternetperson 8 Years · 3101 comments

Why mention Westinghouse in the teaser and the article itself if you're not going to provide any insight into why Westinghouse is relevant to this discussion?

brucemc 14 Years · 1541 comments

Apple at least could conceivably have a reason to buy them, if they felt that, like CPU/GPU, it was strategic to have this in house (and even that is quite a stretch).  But Google and Amazon?

randominternetperson 8 Years · 3101 comments

macxpress said:
If I were Apple, I'd really try to snatch this up. This is a place where I think Apple should spend some money unless someone know's of some new technology coming soon that replaces NAND flash. 

Why buy the cow when you can get the milk for... er, at market prices?  Apple's supply chain strategy has worked great for the past decade or two.  Why change now?  At some point (be that in 2 years or 5 years or perhaps longer) this huge capital expense will be obsolete. 

randominternetperson 8 Years · 3101 comments

brucemc said:
Apple at least could conceivably have a reason to buy them, if they felt that, like CPU/GPU, it was strategic to have this in house (and even that is quite a stretch).  But Google and Amazon?

Agreed.  Hell, why not toss Facebook and Uber into the mix as possible suitors.  That would make as much sense.