Apple is Considering Helping Toshiba With Chip Unit Investment

Apple may be coming to Toshiba’s rescue, according to Bloomberg. The iPhone maker is actively looking at options for helping the troubled Japanese company by investing in its semiconductor unit, which has been put up for sale, according to people familiar with the matter.

Apple is considering a range of options, from partnering with Taiwan’s Hon Hai to joining with Japanese investors on a bid, said the people, asking not to be named.  SoftBank is considering getting involved in the Toshiba chip unit bidding and may cooperate with Hon Hai or Apple, the people said.

If Apple enters into the auction that may improve Toshiba’s prospects for emerging from a fiasco in its Westinghouse nuclear business that has led to billions of dollars in losses. Toshiba needs to raise money to plug the hole in its balance sheet, but the bidding process so far has been rocky. The Tokyo-based company is wary of Hon Hai’s bid to take full control of the chips unit on its own because it anticipates Japanese and U.S. governments would object.

Apple’s move caps a hectic week for Toshiba. First, the 142-year-old electronics conglomerate  warned it may not be able to continue as a going concern because of the Westinghouse losses. Then, amid signs of progress in the company’s efforts to sell its semiconductor unit, joint-venture partner Western Digital notified Toshiba such a sale may violate their contract.

Apple has not made a definitive decision about what role it will play in the chips sale, if any, the people said. The company has an interest in the unit’s future because iPhones and iPads use flash-memory. Apple could take a minority stake in the chip business with Japanese finance firms, as well as working with Hon Hai or SoftBank, the people said.

It’s not clear whether SoftBank is weighing an investment in the Toshiba chips unit or another role, the people said. The Tokyo-based company is in the process of raising a $100 billion fund and has yet to close the initial investment round.