There were negotiations going on but finally, Japan’s Toshiba Corp According to Bloomberg’s sources agreed on Thursday to sell its chip unit to a consortium led by Bain Capital. This deal is reportedly worth 17.7 Billion Dollar.
The agreement ensures that chip unit will be Toshiba affiliate, although it would be the property of Bain Capital Group. Bain’s consortium includes companies like Dell Inc, Seagate Technology Plc, Kingston Technology, South Korean chipmaker SK Hynix and Apple.
The signing of this deal was delayed because consortium company Apple Inc demanded new terms on-chip supply in return for funding. Both Toshiba and Bain wants to seal the deal before March but Western digital (associated with Toshiba in-memory business) claims to have a right to vote in the sale. This hurdle can take 6 or more months. So many companies like Amazon, Foxconn, Google, TSMC, and Broadcom made a bid this year to get a piece to memory chip unit.
Toshiba previously announced that it would sell its NAND flash memory unit in January 2017 to cover huge losses but now they have decided to raise funds before the march to remain in Tokyo stock change.
As per reports, SK Hynix will invest 395 billion yen (3.5 billion dollars) in the unit. NAND flash is a very important component of iPhones and iPad that is why Apple was interested in it. Samsung is the dominant maker of chips who is the rival of Apple.