Foxconn Says it Will ‘Definitely’ Bid on Toshiba’s Chip Business

Taiwan-based Foxconn says it will ‘definitely’ bid on Toshiba Corp’s chip business. Terry Gou, founder of the contract electronics maker, said the company is “very confident” that it can buy into it.

Gou’s remarks came as the company broke ground on its 61 billion yuan factory in the Guangzhou province of southern China.

Toshiba is aiming to recoup some of its $6.3 billion writedown from its nuclear unit. The company is considering selling most or all of its flash-memory chip unit to reach this goal.

“I cannot say we are for sure getting it, but we are very confident. We are also very sincere,” Gou told Reuters. He also added that money should not be the only consideration for Toshiba, as Foxconn has the ability to sell its technology all over the world.

Sources close to the matter say Toshiba is looking to raise at least one trillion yen, and may start looking for initial bids in March. The company, the source says, is aiming to pick a preferred bidder, or bidders, by the end of May.

Because Foxconn is not a chip maker, Gou said the bid is not likely to be subject to anti-monopoly issues.

Gou invited Toshiba to set up a factory in China while keeping its core technology in Japan to expand capacity.

Toshiba is the world’s second-largest NAND chip producer after Samsung Electronics Co Ltd. Foxconn is one of the largest employers in China and assembles Apple Inc’s iPhones.

Gou said Foxconn’s priority markets are the United States and China, and expressed the importance of he U.S. not engaging in a trade war with China.

Many Taiwanese tech manufacturers operate factories in China. Trump has suggested raising tariffs on imports from certain countries, including China.

The company is also considering working with Sharp to invest $7 billion in developing a display factory in the United States.