Junko Yoshida, EETimes
1/17/2017 04:20 PM EST
MADISON, Wis. – Toshiba is considering a plan to spin off its chip business and sell a partial stake in the unit to Western Digital, reported Japanese financial daily newspaper Nikkei.
The Japanese conglomerate is facing a fiscal scramble triggered by a likely write-down on its U.S. atomic power operations owing to risks of cost escalation in plant construction.
Toshiba isn't planning to sell its semiconductor business as a whole. Instead, it's offering a roughly 20 percent interest for 200-300 billion yen ($1.77-$2.66 billion) while retaining a majority stake, Nikkei reported. Further the paper said, "Toshiba plans to keep the new company in group earnings. The unit could consider stock-market listing in the future.”
News of the plan to sell is already garnering interest both from Western Digital and several investment funds, according to Nikkei. Toshiba hopes to create the new chip business company as early as the first half of this year.
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