Broadcom is likely to emerge as the winner in the bidding war for Toshiba’s chip manufacturing unit.

Japan’s Asahi newspaper has reported that Toshiba Corp is considering giving U.S. chip manufacturer Broadcom Ltd exclusive rights to negotiate its prized chip business unit.

With this information hitting the news industry, Toshiba’s share surged by 4% in early trading on Tuesday.

As per sources familiar with the matter at hand, Broadcom has teamed up with U.S.-based Silver Lake, a buyout firm, for bidding Toshiba’s chip manufacturing business.

A spokeswoman for Toshiba declined to comment on the Asahi report.

As of 2438 GMT, Toshiba’s shares were up 2.7 percent to 262.5 yen.

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Tags: Asahi, Broadcom, chip manufacturing business, exclusive negotiating rights, Silver Lake Partners, Toshiba, U.S. Westinghouse nuclear power plants