Broadcom emerges as the highest bidder in the first round of bidding for Toshiba’s chip unit

Foxconn is a close second. Japan, U.S. and Taiwan will have to coordinate more closely so that the Chinese don’t get their hands on U.S. nuclear technology, which has the potential for dual use.

As per a source briefed on the matter at hand, Broadcom Ltd has topped the top 10 bidders who have participated in the first round with an offer of $23 billion (2.5 trillion yen) for Toshiba Corp’s (6502.T) chip unit.

Taiwan-based Foxconn is in the second spot with an offer of 2 trillion yen, said the source who declined to be identified since he was not authorized to speak on the matter to the media.

The source has however disclosed that both, Broadcom and Foxconn, were among the companies who were selected to proceed to the second round.

Broadcom has partnered with U.S. private equity firm Silver Lake Partners LP with its offer.

The source also stated South Korea’s SK Hynix Inc along with Western Digital Corp, who incidentally has a joint agreement with Toshiba for its chip manufacturing plan, are the other suitors. Their offer price is however much lower than Foxconn or Broadcom.

SK Hynix’s offer amount was not immediately disclosed.

Toshiba has said it will need to sell most if not all of its prized businesses to cover charges related to the writedown of its U.S. nuclear unit Westinghouse Electric.

Representatives from Foxconn, Western Digital, Broadcom, and Silver Lake could not be reached immediately for comment outside of regular business hours.

A spokeswoman for Toshiba declined to comment on the specifics of the sale process.

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