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Apple and Dell reportedly joining Foxconn consortium for Toshiba chip

Tinuku ~ Foxconn says Apple and Dell are joining for the Toshiba chip business. Apple Inc. and Dell Inc. will join the Foxconn-led consortium for the Toshiba Corp. chip unit. Terry Gou, founder and CEO of Foxconn also said Kingston Technology Co. will also be part of the bidding group, while Amazon.com Inc. is close to joining.

Tinuku Apple and Dell reportedly joining Foxconn consortium for Toshiba chip

The Taiwanese company was also in discussions with Alphabet Inc., Microsoft Corp. and Cisco Systems Inc. about their participation in the tender, although it declined to say the total number of bids submitted. Gou just said that the deal is very close with other offers.

"I can tell you that Apple is clear," Gou said in an interview.

Toshiba wants to seek buyers for NAND chipmakers worth more than $ 18 billion to cover billions of dollars in costs on US nuclear businesses in the now-bankrupt Westinghouse Electric Corp.

The Japanese government has said it will block an agreement that has the risk of transferring key chip technology abroad. But Gou said Foxconn, officially known as Hon Hai Precision Industry Co., and Japanese unit Sharp Corp. have joint stocks.

Another source said SoftBank Group Corp. is also part of the Foxconn consortium. Foxconn's offer came as uncertainty over the consortium competed in the auction days before Toshiba announced the option.

Western Digital Corp raised the final offer as a way to reach agreement. A source said the new offer was more than 2 trillion yen (US$18 billion). The news raised Toshiba's share of 9 percent on Monday after dropping 26 percent due to heavy losses at Westinghouse.

The winner's announcement will be made at a board meeting on 15 June. Some sources say the Innovation Network Corp. of Japan is also exploring the consortium with Bain Capital, although it is not clear which other companies are also members of the group.

Western Digital is seen to have significant potential as both operate a chip plant with Toshiba in western Japan. But both have disputed and Western Digital is filing international arbitration claims.

Toshiba has chosen a separate offer from US chip maker Broadcom Ltd, which has partnered with Silver Lake private equity firm to offer 2.2 trillion yen.
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