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Foxconn eyes Toshiba's chip business: Terry Gou

Mr Gou was speaking as Foxconn broke ground for $8.87 billion flat-screen display factory in Guangzhou province, southern China.

Hong Kong: Taiwan’s Foxconn, the world’s largest contract electronics maker, is “definitely bidding” for the chip business of Toshiba Corp and is “very confident” it can buy into it, company founder Terry Gou said on Wednesday. Mr Gou was speaking as Foxconn broke ground for $8.87 billion flat-screen display factory in Guangzhou province, southern China.

Toshiba is considering selling the majority — or all — of its marquee memory chip business, as it seeks to make up for a $6.3 billion writedown from its nuclear operations. Mr Gou declined to say how much of the Japanese company’s chip business Foxconn was interested in. “I cannot say we are for sure getting it, but we are very confident. We are also very sincere,” Gou said. He later told Reuters that Foxconn was “definitely bidding” for Toshiba.

“Money should not be the only thing (for Toshiba) to consider... We can help its technology to be sold in products all over the world. That is Foxconn's advantage.”

Mr Gou said Foxconn was open to teaming up with partners on any bid for Toshiba’s chip business, adding anything was possible. Toshiba wants to raise at least $8.8 billion in part by selling most of its flash memory chip business, seeking to create a buffer for any fresh financial problems, a person with knowledge of the matter previously told Reuters.

Another person told Reuters that Toshiba would seek initial bids in March, and aims to choose a preferred bidder or bidders by the end of May. Mr Gou said Foxconn was not a chip maker and so its bid is unlikely to be subject to anti-monopoly issues.

( Source : Agencies )
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