Japan is making every effort to ensure that the sale of Toshiba’s chip manufacturing unit, which it deems as a risk of national security, does not fall into the hands of the Chinese.
Japanese newspaper Asahi has reported that a fund which has the backing of the Japanese government as well as a “policy bank” are considering a joint bid with Broadcom for Toshiba’s NAND chip business.
The development is significant since it has the potential to vault the U.S. chip manufacturer to the lead position in the race to buy Toshiba’s prized business unit.
Japan’s Asahi newspaper has reported citing an unidentified source that the Innovation Network Corp and the Development Bank of Japan are teaming up with Broadcom so as o prevent Toshiba’s chip manufacturing technology from going into the hands of the Chinese.
Toshiyuki Shiga, INCJ’s Chairman stated that the fund was looking at the chip auction despite the fact that it hadn’t participated in the first round of bidding.
As per sources familiar with the matter at hand, INCJ could potentially have a minority stake in the business since it would help the Japanese government prevent a sale to bidders.
Japan considers the sale of Toshiba’s chip manufacturing unit as risky to its national security.
While INCJ did not immediately respond to a request for comment outside business hours, Broadcom’s media representatives could not immediately be reached for comment.
A spokesman for DBJ declined to comment.