Toshiba selects Bain-led consortium for its chip manufacturing plant

While the chip manufacturing industry is considered by Japan to be of national interest, and Toshiba made active efforts to put the snooping Chinese at bay, sources reveal that SK Hynix, considered close to China, will partly finance the purchase.

According to three sources familiar with the knowledge at hand, Bain Capital with its $7.7 billion (850 billion yen) in equity, is set to be the biggest investor in Toshiba Corp’s chip unit.

Half of this amount will be sourced from South Korean chipmaker SK Hynix, revealed sources, who declined to be named due to the sensitivity of the matter.

Toshiba is aiming to clinch a deal worth at least $18 billion (2 trillion yen) as it is looking to offset its massive losses.

Japan’s state-backed funds, Development Bank of Japan (DBJ) and the Innovation Network Corp of Japan (INCJ) will each provide 300 billion yen in equity, while the core banking unit of the Mitsubishi UFJ Financial Group Inc will provide 550 billion yen in financing, said the sources.

Do note, the numbers are yet to be finalized and are subject to change, said one of the sources.

While Toshiba and all members of the consortium declined comment, a representative for the DBJ was not immediately available for comment.

($1 = 111.1500 yen)

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